First things first, a Property Manager has many, and I repeat, many, tasks. Hence that so many, not so honest, Property Managers have taken on the marketing strategy of advertising low fees like “Property Management at as low as $45/month with no rental commissions” which by the way, it’s literally impossible for a Property Management Company to work for $45/month/unit and make any profit. So, what these, not so honest, Property Managers do is that they charge $45/month per unit, but then they have all of these hidden fees for almost any task they need to perform and these are just some of the examples I’ve seem:
“$75-$150 for putting a 3-day notice on a tenant that has fell behind on its payments.
$50-$150 for each time they need to pay a visit to the Tenant for any reason whatsoever.
$150-$300 for move-in, move-out or a Property Inspection.
$15%-30% of any repair done on the Property.
$350-$1,000 for “handling” an eviction (basically keeping track on the eviction with the attorneys).
$150-$500 for marketing expenses on a vacant property.
$250-$750 for making a new Lease Agreement.
$150-$300 for a renewal contract execution.
$50-$100/month or a $250-$1200 for making the Property Accounting (not the LLC or Corp’s accounting), just the Income and Expenses of the Property.
$50-$150 to provide online access to Landlords account.
$25-$100 for every Tenant Screening on a Prospect Tenant
The previous are all of the hidden fees I’ve seen in the past that some Property Managers actually use to profit. The thing is, if you haven’t realized yet, that a Property Manager actually has a ridiculously amount of tasks which multiple every time a door is added to the portfolio and when they think they’re growing enough to make more money, they realize they need to hire more people to cover the amount of work. So, you might be wondering how do we, at EverRealty, actually make money and here’s the explanation: we have developed a work-flow of standardized processes that allow us to make a profit without having to sell fantasies nor hidden fees and our strategy pretty much consists of offering an all-included Property Management Service with our price right up-front with absolutely no other fees so you can actually forecast your property yield better and, of course, a considerable amount of units growing by the day.
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Sincerely,
Luciano De Jesus, VP.