Arizona does not have any regulations or limits to what property management companies can charge for their services. When you’re thinking about professional property management cost in Phoenix, AZ, you need to make sure you understand what your fee includes and what will be extra. Sometimes you can face advertising charges, leasing fees, and other costs in addition to the property management fee. You have to know what you’re paying for.
Monthly Management Fees
Many property management companies will charge a percentage of the monthly rent for their management fee. In the Phoenix market, most property managers are fee-based, so when you’re comparing management companies and their prices, ask to see something in writing that details what exactly you’re paying for.
Flat Fee Management Costs
There’s also a flat fee model that some property management companies use. It can be a lot better for you as a landlord, especially if you have a home that brings in a higher amount of rental income. Tenants who rent a $1,800 per month property generally make more money, and they won’t mind taking care of minor repair issues around the house. They will take good care of the home and probably stay longer. Therefore, it takes a lot less work to manage the property. So it may not make sense to pay $180 a month in management fees when your property manager is doing a lot less work than would normally be required.
You need to make sure there aren’t any surprises when you get your monthly statement. Hidden fees and unexpected charges can add up quickly. Check your management agreement before you sign it so you know what your actual costs will be. There might be set-up fees, annual fees, advertising fees, and sometimes a mark-up on maintenance costs. These fees are not necessarily bad or unfair. Professional property management is a complex and highly detailed business, and you’re absolutely getting a lot of value for your money. It’s just important to understand your contract and what the expectations are. Have an honest and transparent conversation with your potential property manager about the fees that will be charged and how they will be paid.
The cost of property management is often minimal compared to all the protection, expertise, and management you’re getting in return. If you have questions about flat fees and percentage fees or anything pertaining to the cost of property management in Phoenix, contact HomeQwik.