Property Management Fees and Services Phil Keller / Shana Drew
FEES 1. Finders Fee: 1 Full month’s rent -Covers the period from the day you sign to the day the tenant takes occupancy -Charged every time a new tenant is procured, unless the tenancy was less than a year and then things will be worked out on a case by case basis -Fee is collected upon tenant’s payment of the first full month’s rent – pro-rated rent received the prior month will just be charged a management fee Existing tenant Should the property already be occupied at time of our management employment, there is no administrative fee charged for handling the takeover of the property which includes setting the property up in our system and getting things set up with the tenant as well as anything else that may be required to transition the property. Normally leases can just be continued since they are between the owner and the tenant and the brokerage is just the facilitator. Should however the owner request a new lease, then there would be an additional charge of $100.00/lease additionally for this. All charges would be deducted from the next rent in addition to the management fee. Owner procurement of tenant If an owner has or wishes to find their own tenant prior to signing the management agreement, we would only charge a flat $200.00 for the setup of the property in our system and doing the lease. We still however, because of fair housing laws, would need the prospect to go through the application process for which they would have to pay the normal fee.
Owner procurement of tenant once management agreement is signedOnce the management agreement has been signed, we initiate the necessary administrative steps to get the property set up in our system and out there for rent. We would prefer if the owner would cease from being involved with the tenant procurement process, but if for some reason the owner still finds someone we will discount the management fee by 25%. The Value of your finder’s fee: The day you sign with us, we start working for you as your managers. So besides putting your house out there for rent, we will help you with whatever you need to get the property ready and rented whether you are still here or gone. This means that until a tenant takes possession there is no fee of any kind to you, so if it is 3 months before a tenant takes moves in then you get 3 months of free management. On top of that we do not charge a management fee the month you pay the finder’s fee so that months management fee is also part of the finder’s fee. Also covered in the fee is all our administrative work from signing the lease to getting everything set up in our system and getting the tenant moved in. So to your advantage this makes us very motivated to find a tenant as quickly as possible so that we can start generating some income for you and us. 2. Management Fee: 10 % of monthly rent collectedThis means that:o If for some reason a tenant only has to pay a pro-rated rent in a certain month, then we only collect a fee on that amount paid. o If the rent is paid in parts then the fee is charged on each part when receivedo If there is no tenant then there is no management fee 3. Lease renewals No fee for renewing a tenant’s lease regardless how long they stay you just continue to pay the usual management fee each month until the tenant leaves 4. Application fee $40.00/applicantPaid by the applicant at time of submitting the application
SERVICES 1. Full property management We will procure a tenant and then deal with all issues with the property on your behalf. 2. Tenant Procurement – ONLY Fee : 1 full month’s rentIn this case the owner hires us to just find a tenant for the property. Once an applicant has been agreed to, the owner can either use their lease or we will use ours to seal the deal – leases are between the owner and tenant, we are just agents doing the paperwork and are thereafter no longer involved. Fee is due upon applicant signing. 3. Property oversightFee: Monthly flat management fee of $200.00 Sometimes owners just need someone to check on their property because they are going to be away on an extended assignment or will be returning to the property and don’t want to put a tenant in for a short term. In this case we would physically check on the property once a week at our convenience, take on utilities, arrange for contractor services such as mowing, repairs, improvements, etc, and pay bills out of pre-deposited funds to the management account. Any service that would require someone to go additionally to the property and or remain there while the service is being performed would be billed as a contractor service of $30.00 minimum including the first hour and $20.00 for every partial or full hour thereafter.