Property management fees in Charleston, SC vary from company to company. Usually, there are three specific fees that are involved in professional management. You should always ask about other costs before you sign a management agreement with any company.
Set Up Costs
On-boarding an owner and a property takes a lot of time, and that’s why a set-up fee is often charged. Your property manager will need to get information about your home into their own system. You’ll be connected to your portal and your bank account information will be stored so rent payments can arrive electronically. The fee usually ranges in the area of $100 to $500, and you are only charged once.
Leasing or Placement Fee
The leasing fee covers the cost of placing a great tenant in your property. Your property manager will spend a lot of time on photographs and videos, listing your property on all the high traffic rental websites, and showing the home. You’ll also get expert tenant screening procedures for this fee, and your tenant will be moved in and the lease signed. This is also a one-time fee, and the amount can be as little as 10 percent of the first month’s rent or as high as a full month’s rent.
Every month, you’ll pay a monthly management fee which is either a flat rate or a percentage of the monthly rent. It depends on the property type and whether you have a long-term rental or a vacation property. If you are bringing multiple units or properties to a management company, you’ll probably get a volume discount. This fee covers everything that a property manager does to protect your home, hold your tenants accountable, and oversee the day to day operations of your rental property.
Understand the Math
If your property rents for $1,500 per month, here is a breakdown of what your property management costs might look like:
Set-Up fee: $200
Leasing fee: $500 (30 percent of first month’s rent)
Management fee: $150 (10 percent of monthly rent)
Total: $850 for your initial property management costs, then $150 every month.
As you can see, with your rent being $1,500 per month, you’ll earn $650 in your first month, and then $1,350 each month during the remainder of the lease. You also need to budget for things such as maintenance.
The costs of professional management are reasonable when you consider the knowledge and the service you’re getting in return. If you have any questions, please contact Charleston Property Management.