The basic Orlando property management costs vary, based on the management company and what services they provide. Orlando property management fees vary from company to company and can be called different things. Before agreeing to any property management cost estimate, you want to understand the property management fee structure.
For example, on top of their basic rate, some Orlando property management companies charge for the direct cost of the property management services needed to find a suitable tenant. These fees can include advertising and marketing expenses.
Common Orlando Property Management Fee Structures
When looking to answer the question, “how much does it cost to hire a property manager in Orlando,” a property management fee will include a one-time placement fee, called a “leasing fee.” Some professional Orlando property management companies will charge a flat fee. In addition to the leasing fee, there will also be a monthly charge for managing the property, based on several factors.
A property management company’s flat monthly fee depends on:
- The amount of rent
- How much work the property upkeep will take
- Any other services the company provides to promote or care for the property
Because property management fees vary widely in Orlando, it is helpful to understand exactly what goes into the fee. Make sure you shop around and get in writing what each property management company you talk to is promising to do in return for their fees. You may find that a pricing bargain means fewer services are provided.
Here is a breakdown of the fees you can expect to pay an Orlando property management company.
Leasing/Tenant Placement Fee or Startup Fees
Several factors play into the makeup of the leasing or tenant placement fee. These are also often referred to as startup fees. The amount you pay depends on a few factors:
- The state of the premises
- Whether the premises are vacant
- How much work is required to be able to show the place
Vacant premises in pristine shape will cost less than a property that needs a lot of cleanup work or coordinating contractors for repairs to get the place in a livable and showable condition. Additionally, it is always easier to show a property if the tenant has vacated, so the fee will usually be more if the current tenant still resides there.
If the property is in dire condition and needs much prep work before showing it to a potential renter, you can expect to pay more in startup costs. Another source of additional startup costs is whether the property adheres to all Orlando regulations. Bringing the property up to compliance can often add to startup costs.
On average, once the property gets rented, you can expect to pay 50 to 75 percent of the monthly rental cost, plus any expenses. The property management will always inform you of additional expenses.
An advertising fee is often considered an additional cost above the startup fee. The following are examples of advertising locations:
- Online property rental sites
- In weekly and daily newspapers, online and in print
- On social media via earned and unearned media
- Various periodicals
Advertising fees are generally a standard amount that covers any and all advertising the property management undertakes to find a suitable tenant for the property. In most cases, you will get an inventory of costs for each type of advertising.
Another facet of advertising charges can be expenses needed to advertise for and host an open house on the property. There will be discussions regarding marketing and advertising expenses before making any arrangements. A fee may also be associated with canceling a planned event at the last minute.
Generally, however, an advertising fee applies to straight advertising, as described on the list above. You can expect that additional advertising costs appear in the total at the end.
Monthly Management Fee
What most people mean when they ask, “How much do property managers charge?” is the monthly management fee. Monthly management fees are the most substantial expenses in property management in Orlando or elsewhere. So, what does the monthly property management fee entail?
A monthly management fee covers any services the property management company provides for the property. The monthly fee will have a base rate, and the total cost will reflect the work the property management puts into the property. At a minimum, the cost of property management services will run up to 10 percent for a base rate.
That base rate covers collecting rent in most cases. Other fees associated with the monthly management fee can include insect control, repairs, landscaping and lawn maintenance, managing tenant evictions, and maintaining financial records for your taxes.
Typically, a monthly management fee is negotiable regarding additional services that the property management company may perform. For example, if you have an older home, repair costs will be higher, whereas if the property is brand new, repair costs should be minimal.
Other Potential Orlando Property Management Fees
If you are reviewing property management cost estimates, one thing to look out for is add-on fees. Many people call these “hidden fees,” but in most cases, the fees are in the open, but landlords do not notice them until they are applied. Hidden fees can include an array of extra services related to:
- Getting a property ready for a tenant
- Showing the property
- Maintaining the property and associated paperwork
The best way to consider “other fees” is to figure out the base cost of your property management contract with the company; then anything else qualifies as “other.” That can include but is not limited to:
These apply if the work occurs outside of recognized business hours.
Home Warranty Fees
Home warranty fees typically cover the cost of replacing mechanical systems or appliances.
Cancellation can include canceling events, like open houses or scheduled services, like lawn care.
Administrative fees apply to any paperwork or administrative work associated with your property. It can also include any work done to assemble documentation on a tenant for eviction and court costs.
The best way to approach additional fees is to assume that if the work differs from the contract, you will pay for it. You should insist that the company inform you of additional fees and get your approval before going through with them. If possible, get that in writing in your contract.
Factors That Affect the Cost of Orlando Property Management Services
Several factors can affect the property management costs of your average Orlando property. These include:
- the type of property
- work needed to upkeep the property
- the condition of the unit or property
- the location of the property
Additionally, whether caring for the property is full or single service can influence the management fee. Full-service property management includes all the responsibilities of the landlord, as well as serving the owner and the tenant. This hands-on approach to property management will affect the property management costs of your Orlando property.
Summary of Orlando Property Management Costs
When looking to answer the question, “how much does it cost to hire a property manager in Orlando?” you can expect a startup fee, called a leasing fee. After that, you can expect to pay a monthly maintenance and management fee, including any additional costs associated with managing your property. Assume that all extra services will find their way in some capacity onto an invoice.
You want to make sure your property management company is as dependable as you want your future tenants to be, and we can help. Contact The Realty Medics today for more information.