Not sure what you’re paying for when you pay a property management fee?
That’s part of the problem.
Property management fees, leasing fees, eviction fees, vacancy fees – all these fees can be confusing. When you partner with a Del Mar property management company, you must compare pricing as well as service. Additionally, the service you receive from one management company may be very different from what you receive from another. There are also flat fee pricing models and pricing models that have you paying a percentage of the gross rent that’s collected every month. Which is better? How do you know if you’re getting the value you expect?
We strive to demystify property management fees. Let’s talk about why our fee structure at Onyx Property Management works well for the owners and investors who choose us.
Property management fees generally pay for the time, technology, and other resources that are required for your management team to handle the day-to-day operations of your rental properties. These fees cover a range of services designed to ensure your property is well-maintained, tenants are happy, and your investment yields returns. You’re paying for accounting, tenant relationships, maintenance coordination, and so much more.
Here are some of the most common types of management fees you’re likely to run into as you begin exploring property management services in Del Mar.
This is the most common type of fee and typically ranges from 8% to 12% of gross rent. It covers the general management of the property including rent collection, tenant communication, and maintenance coordination. Your property manager will deduct the management fee from the rent before depositing the net proceeds into your account.
When you’re working with a company that charges a flat fee, it doesn’t matter how much rent you’re bringing in. You’ll pay that one flat fee, and it will be a fixed amount.
The leasing fee is charged when a new tenant moves into your property. This fee usually equals one month’s rent. It might also be a percentage of the first month’s rent. Usually, the leasing fee covers the costs of advertising and marketing the property, screening applicants, and preparing lease agreements. Showings, move-in inspections, and other preparations for the tenancy will be part of the leasing fee as well. You’ll typically pay this only once, unlike the management fee, which is paid monthly.
You may encounter a few property management companies that charge an additional fee for coordinating and overseeing maintenance and repairs. This is often a flat rate or a percentage mark-up on the cost of work performed by a third party vendor. For example, if your invoice for a plumbing repair is $650, and your property management company charges a 10% charge on all maintenance invoices, you’ll pay an additional $65 on top of that $650 bill.
Some companies charge a fee when the property is vacant. This can be a flat fee or a reduced management fee that covers basic services required to keep the property in good condition until it is rented again.
At Onyx Property Management, we’re opposed to vacancy fees. We see it as our fiduciary duty to keep your property occupied and profitable. If you’re not receiving rent payments, we should not be getting paid. That’s our stance. Other companies might feel differently, so make sure you ask about that when you’re choosing a management partner.
If a tenant needs to be evicted, there may be a fee for handling the legal process and court appearances. This fee varies widely depending on the complexity of the eviction. Some companies will also offer an eviction protection plan, protecting you from some or all the court and eviction costs.
This one-time fee covers the initial setup of the property in the management company’s system and the creation of tenant and financial records. It can range from $100 to $300. Some management companies justify this because of the administrative work that’s required to on-board a new client.
Hiring a property management company might seem like an added expense, but there are several reasons why these fees can be worth the investment.
Managing a rental property can be time-consuming. A property management company handles all day-to-day tasks, allowing you to focus on other business ventures, tend to your other responsibilities, or enjoy more free time.
Property management companies bring a wealth of knowledge and experience to your investments. We can handle tenant issues, legal requirements, and maintenance problems more efficiently than an individual landlord.
Professional management often leads to happier tenants, which can result in longer tenancies and lower turnover rates. This means fewer vacancies and a more stable rental income.
Navigating the laws and regulations surrounding rental properties can be challenging, especially in California. Property management companies ensure your property complies with all relevant laws, reducing the risk of legal issues.
From collecting rent to handling taxes, property management companies provide comprehensive financial management services, ensuring your investment remains profitable and compliant with tax regulations.
Hiring a property management company in Del Mar can save you money. Yes, you’ll pay a management fee every month. And, depending on the company you choose, there might be other fees, too. But you’re getting expertise. You’re getting peace of mind. You’re getting less risk and liability.
Remember that you’re paying for service. If a price seems too low, it’s probably because you’re not getting much in exchange for that price, and you’ll have to pay extra for the services you thought were included.
At Onyx Property Management, we don’t have extra or added fees. You pay a monthly management fee and that’s it. We’d love to tell you more about it, so contact us to talk about what our Del Mar property management fees are.
Onyx Property Management serves San Diego and the entire county, including San Diego, Chula Vista, Oceanside, Carlsbad, and the surrounding areas.
