Colorado Springs property management companies are all different in the ways that they charge for their services. What you pay will ultimately depend on what type of management you need, how many properties you need management for, and what types of properties those are.
There are a few common fees and traditional expenses that you’ll likely encounter no matter who you choose to deliver your Colorado Springs property management. We’re providing an overview for owners and investors that will help you know what to expect.
Colorado Springs Property Management Fee Structures
Some companies offer flat rate fees, where you pay the same amount regardless of the rental price attached to your home. Other property managers will charge you a percentage of the collected rent. You need to know whether all the management services you need and expect are included, or if they will be extra. You may find a management company that charges a low monthly fee but then also charges for each inspection, maintenance coordination, and tenant phone call. You might also find a management company that charges a little more but offers an all-inclusive management package that covers all those things.
Leasing Fees in Colorado Springs
The first fee you should be prepared to pay is the leasing fee, which is sometimes called the tenant placement fee. This is a one-time fee and it is either a flat fee or a percentage of your first month’s rent. It covers the costs associated with finding and placing a well-qualified tenant for your property. Most leasing fees will include things like marketing and advertising, showing the property, pricing the home, collecting applications, screening tenants, and managing the lease execution and move-in process.
Remember that leasing is a huge part of your investment success. Colorado Springs property managers that can reduce your vacancy time and get a great tenant into your property for the right price is worth any reasonable leasing fee.
Colorado Springs Property Management Fees
Your monthly management fee will be a percentage of the rent that’s collected or a flat fee. It should cover everything a property manager does to protect and maintain your home. This includes rent collection, lease enforcement, inspections, documentation, accounting, tenant communication, the service of notices, legal and regulatory compliance, and responding to routine and emergency maintenance.
Additional Property Management Fees
You can expect to pay leasing and management fees regardless of which management company you choose. Some Colorado Springs property managers will charge additional fees such as account set-up fees, administrative fees, advertising fees, technology fees, inspection fees, accounting fees, and maintenance mark-ups. Talk about all the fees you’ll be responsible for paying up front, and look through your management contract carefully before you sign it. The last thing you want is a big surprise in your accounting statement.
Measuring Value vs. Cost with Colorado Springs Property Management
It’s natural to gravitate towards the lowest price, but remember that property management is not a product, it’s a service. You’re handing over one of the largest investments you’ll ever own. You’re paying your management fee for experience, judgment, relationships, and resources. A good management company will provide a lot more than basic rent collection and tenant placement. You’re looking for expertise and responsiveness. You want a company that will respond to maintenance issues in the middle of the night and keep you from making fair housing mistakes. Don’t shop around for the lowest price. Look for the best service.
If you have any additional questions on management fees or anything pertaining to Colorado Springs property management, please contact us at Muldoon Associates. We’d be happy to help.
