Today we’re talking about how much property management costs in Austin, TX. It’s important to know what you can expect when you interview different companies for property management in Austin.
The first thing you will see is a lease fee. This is what’s charged to get new tenants into your property. You’ll see either a fixed dollar amount or a range that might be between 60 and 100 percent of a full month’s rent.
Property Management Fee
The property management fee is paid on a monthly basis once tenants are in your property and paying rent. This can be a fixed cost or a percentage, between six percent and 10 percent of the monthly rent. Some property managers will charge a minimum management fee, or a vacancy fee, which is a cost that you’ll be expected to pay even when your home is vacant and there’s no rent coming in.
Price versus Service
You might wonder why costs are different; why does one company charge only six percent when so many others charge 10 percent. Most likely, these companies charging less in management fees are in different stages of growth and formation. If one company is charging a lot less, that could mean it’s a one person operation who works from home and doesn’t have a dedicated office. The companies with higher fees might charge more because they have better credentials, a fully trained staff and they consider themselves experts.
Ask yourself if you’re looking for the lowest possible rate or if you’re looking for an expert. Experts will charge more and provide more value. They should bring something more to the table and show you how that extra value helps you. Have the conversation about the property management services you can expect, and ask questions.
Other fees you may not have considered include the lease renewal fee. When a lease is renewed, some property managers will charge you a fixed amount or a rental percentage. There might also be invoice markups with some property managers. Any of these costs have to be in the contract or they’re not legal. The invoice markup is a fee the property manager will charge when processing an invoice for you. That can be a fixed dollar or percentage of the invoice. Look out for language in the management agreement that requires you to sell your property with that management company. You don’t want to be locked in.
If you’d like to hear more about our services and what we charge, please contact us at Austin Landmark Property Services.