There are different property management companies which have a range of fees depending on certain factors. Ideally, it is not advisable to settle for the lowest charging company because your valuable property may not be safe or well managed.
Before settling on a fee, you should consider:
• What other firms are charging
• Variety of services provided by the company
• Quality of services provided
Although most people may opt to go for the companies which are offering low prices of the services they offer, you should be very cautious before making a decision. Under-pricing companies show that they may either be providing poor services which are not dependable or they are trying to attract more customers with their low prices. For a company to realize profits with such low pricing, their managers are most likely given a lot of duties than they can handle leading to poor management.
Price should be the last thing you consider before hiring a management company. Therefore, this should be after you’ve considered all the other factors, narrowed down to a few companies which have different prices. You should remember that all fees are negotiable and hence you should always try negotiating for the lowest prices to avoid losing a lot of cash managing your property.
To know how much your property management will cost in Vancouver, you should ask your prospective management firms about the following fees:
Ideally, commercial and residential property management fees differ significantly, but they have a range between 4-12 %of monthly rent. However, management fees differ depending on many factors which include:
• The number of property you need to be managed
• Location of your property
• The services included in management fees
• The number of units in each property
• Current condition of the property
• Market is also a factor which makes fees to differ e.g. Vancouver market will differ with Los Angeles market; Property Management Vancouver & Burnaby – Ascent Real Estate says even the difference from Vancouver to Burnaby can be drastic.
You should consider the above factors, and then you find out the fees which are billed from your account before settling on a property management company.
Here, some companies charge a monthly fee of about $50 when a new tenant is brought on board. However, other companies still expect to collect monthly management fee even though you are not getting rent. To avoid this misunderstanding, you should be very keen when signing the contract due to the language used. To be on the safer side, make sure that the contract reads that management fees should be deducted from rent collected and not from scheduled rent. Ensuring this will guarantee that you are not paying management fees in case a tenant stops paying rent. Ascent Real Estate advises you to leave a property management company if the vacancy fees are too high.
Set up fee
Set up fee is the management fee which is set aside for the time invested in setting up another account. This fee ranges $0-$300 depending on many factors. You should ask if the fees are paid per unit or for the whole property which is under management to avoid future problems due to payment method. Also, you should enquire whether it will make a difference if the unit is occupied or not.
This fee is common although most property owners prefer it being included in management fees for the management company to find long term tenants instead. Leasing fee is paid to managers for the efforts, time and costs incurred in getting you a new tenant. A good management company mostly depends on the management fees rather than the leasing fees to make their primary profit. However, if you are lucky enough to get long term tenants, you will benefit because you will not have to pay leasing fees which could turn out very expensive.
Depending on many factors, tenants may vacate from time to time making it hard for you to keep up with leasing fees. However, you should do a little background check of the management company you are hiring to have an idea of what they are offering and how much you will incur. Having a lot of information about a company, the services they offer and their rates gets you in a better position to negotiate a fair deal as well as getting quality services.
Even though there are many property management companies, taking your time before deciding to trust a certain property management company to take care of your property is a better approach to avoid frustrations in future.