Property management fees are some of the most misunderstood line items on real estate investors’ expense sheets. Knowing what you’re paying for and exactly what you’re getting is essential to achieve positive rental property ROI.
When you partner with an experienced Austin property management company, you should have a clear understanding of what those fees are and what they cover.
In this article, we’ll provide a brief rundown of typical Austin property management fees as well as other rental property investment tips.
Understanding Monthly Property Management Fees
Most companies will offer standard monthly property management fee structures. They should clearly outline what these fees cover and their costs.
For instance, your monthly property management fees might be a flat fee that’s charged to you, or it could be based on a percentage of the rent you charge.
In addition to these base fees, it’s important to investigate any additional fees the property management company may charge you. Look to see whether there’s a separate charge for services such as leasing, tenant placement, renewals and maintenance coordination.
If additional fees apply, carefully evaluate which services you might need and how they could all add up.
How Property Management Fees Affect Your Profitability
When calculating your rental property ROI, you need to account for all fees and expenses, and that obviously covers things such as property management fees. This money comes out of your pocket and gets subtracted from your net rental income.
Hiring an experienced Austin property management company saves you money and boost your rental property ROI in the long run.
So, consider both the costs and benefits of hiring a property management company when evaluating profitability.
If you hesitate to hire a company, remember property management fees are often like common monthly expenses, such as a phone bill. This makes them a manageable investment for professional service.
Tips for Maximizing Profitability Despite Fees
There are many benefits that a good property management company will provide you. The services they offer should increase your rental property ROI.
- They set and update your rental rates to stay competitive in the market.
- They list your property to attract high-quality tenants.
- They draft and enforce accurate leases that are compliant with local landlord laws.
- They conduct ongoing maintenance to keep tenants happy.
- They ensure tenant renewal to reduce turnover and vacancy rates.
Many landlords find these tasks hard, especially if they don’t live near their rental property.
It’s important to partner with a property management company you can trust, though, or else your investment could prove to be an ill-advised one.
1836 Property Management’s Pricing and Fees
1836 Property Management is regarded as the leading property management company in the Austin, Texas, area. We believe in transparency in pricing, and all of our clients know exactly what they’re getting for the property management fees they pay.
While other property management companies may charge a percentage-based rate, we offer a fixed monthly fee based on the package you select. The different options are based on the specifics of your property.
We charge additional fees, but we are upfront about them because we want all of our clients to be well-informed. Here’s a quick overview of what we additionally assess fees on:
- There’s a one-time start-up fee, which takes place before the leasing process begins. This fee covers our maintenance team visiting the property to place a sign and lockbox, and to walk through the property to photograph and document everything.
- We charge for a bi-annual walkthrough report. Every six months, we come to evaluate your property inside and out, and provide you with thorough documentation including photos following the walkthrough. This allows our team to keep an eye on the health of your property to ensure we’re maintaining it properly for the long-term.
- Lastly, every March, we charge an annual technology fee, which enables us to keep your owner portal up and running smoothly, as well as keeping our cutting-edge software current. We provide a full list of the other items that the technology fee covers on all of our management agreements.
For more detailed information on actual pricing and inclusions regarding these fees, please reach out to our team. We’ll be happy to walk you through all the specifics.
Partner with 1836 Property Management for Transparency and Success
Property management fees can range as an expense item in real estate investing. Knowing what those fees are and what they cover are essential if you want to create positive rental property ROI.
At 1836 Property Management, we charge fair fees to all of our clients in order to help them achieve success with their real estate investments. We pride ourselves on being transparent and are always ethical, so you can rest assured knowing we have your best interests in mind.
1836 Property Management is located at 1704 ½ South Congress Avenue, Suite E in Austin, TX, and can be reached at (512) 994-4323.
Contact us today to learn how our transparent fees and expert services can maximize your rental property profitability.
