Property Management Fees - What to Expect

Key Takeaways

• Property management fees vary based on services and pricing models—flat rate or percentage-based—so it’s crucial to compare what’s included to get the best value.
• Common fees include an initial setup fee, monthly management fee, tenant placement (leasing) fee, and charges for services like maintenance coordination, inspections, and lease renewals.
• Partnering with a professional property manager like Ocean Realty & Property Management can save time, reduce stress, and ultimately boost your long-term ROI—even with the added cost.

Successful landlords know that effective property management is key. Even with a great unit and tenant, poor management can undermine your efforts.

At Ocean Realty & Property Management, we ensure smooth operations, timely maintenance, strong tenant relations, and competitive rents to maximize your return on investment. While experienced landlords might self-manage, most benefit from partnering with a professional to save time, reduce stress, and increase profits.

Though property management fees are a cost, they’re often outweighed by long-term savings and improved results. Keep reading to learn more about what to expect from property management fees.

How Much Does Property Management Cost?

Property management fees vary depending on the company and the range of services they provide. Some charge a flat fee, while others base their charges on a percentage of your rental income.

Regardless of the pricing model, it’s important to evaluate the services offered alongside the cost to ensure you’re getting the best value for your investment.

Fortunately, many reputable property management companies provide transparent pricing details on their websites, making it easier to compare and make an informed decision.

What Are the Different Fees Property Managers Charge?

Initial Account Setup Fee

This is often the first fee you’ll encounter when starting with a property manager. It covers the administrative work involved in setting up your account, including paperwork and initial processes. Not all companies charge this fee, some include it within their overall management services, while others list it separately.

Property Management Fee

This monthly fee is typically a fixed percentage of your rental income, with the industry average around 8%. For example, if your monthly rent is $3,000, you can expect to pay approximately $240 per month.

In return, the property manager handles key tasks such as on-time rent collection, depositing your rent (minus expenses) directly to your account, coordinating tenant repair requests, managing routine maintenance, responding to emergencies around the clock, overseeing utilities in multi-tenant properties, providing monthly financial statements, and conducting property evaluations.

When researching companies, always check their service and fee details on their website. Transparency is a good sign, if a company doesn’t clearly list their fees and services, it’s often a red flag. Reputable property managers have nothing to hide and openly share this information to help you make an informed choice.

Tenant Placement Fee

Also called a leasing fee, this charge covers the cost of re-renting a vacant unit after a tenant moves out. Depending on the company, it may be billed separately or included in the overall management fees.

Your property manager will typically conduct a walk-through inspection to identify any necessary repairs or upgrades, like repainting, fixing leaks, or improving curb appeal, before preparing the unit for rent.

Rental Advertising

Marketing your property involves several key steps. The manager will take high-quality photos and create a walk-through video to showcase your rental.

They’ll then craft an engaging rental ad highlighting the property’s features and amenities. Finally, the listing is posted across multiple channels where prospective tenants search, such as online rental platforms, social media, local bulletin boards, and yard signs.

Tenant Screening

Finding the right tenant is crucial for protecting your investment. Experienced property managers use thorough screening processes to identify reliable renters who pay on time, care for the property, report issues promptly, and follow lease terms.

Partnering with a skilled manager significantly reduces the risk of costly tenant problems and helps ensure a smooth rental experience.

Other Fees

In addition to the main fees, property managers may charge for:

• Lease renewals after the original term ends.
• Coordinating maintenance or repair work with vendors.
• Routine property inspections to catch and address issues early.
• Eviction processes when tenants violate lease terms.

Conclusion

Now you know what services go into determining a property management cost. The exact cost will depend on the exact services you’re looking for, where your property is located, and the number of units you want managed, among other things.

For expert help in managing your St. Augustine rental property, look no further than Ocean Realty & Property Management.

We have decades of experience in managing a variety of residential rental units. Including, single-family homes, condos, townhomes, and multi-unit properties. Get in touch to learn more!