The cost of professional property management in Portland depends on the property management company you chose. While many landlords decide to manage their own rental homes because they don’t want to pay any management fees, that decision can actually be costly. When you find a good company that provides valuable services in exchange for affordable costs, you can end up saving a lot of money on your investment.
Property Management Fees
Outside of the general day-to-day management of a property, there are several fees that many companies will charge when you want to do business. The first is a set up fee. This covers the initial inspection of your home that will be conducted by a property manager. It will also pay for the administrative paperwork that needs to be done to prepare your house for the market. Most companies in Portland charge between $75 and $200 in set up fees.
Leasing fees are often the equivalent of half a month’s rent or a full month’s rent. You pay this fee to a property manager to cover the property showings, application processing and tenant screening. It also includes drafting the lease and inspecting the property with photos before the tenant moves in.
A lease renewal fee might be charged as well, when the lease term ends and your tenant wants to renew. This fee is usually about $200 or $250. It might seem costly, but compared to what you’ll have to pay to get the property ready again and search for a new tenant, it’s pretty reasonable.
In addition to the set up, leasing and renewal fees, you’ll need to pay a management fee or a commission. The fees are one-time charges but the management fee is what you’ll pay every month for the property manager to take care of your property and respond to a tenant’s needs. It includes rent collection, maintenance calls and other operational responsibilities. Most property management companies charge a percentage of your monthly rent – often between eight percent and 10 percent.
Those are the basic costs for professional property management. You might also need to pay for additional inspections. Some companies will do a thorough walk through six months into the leasing period to see how well the tenant is taking care of the property. This will usually cost between $40 and $75. There might be additional fees for a property manager who needs to meet a Realtor or talk to insurance adjusters about a claim on your property. Your property manager might charge an additional fee for taking care of maintenance at the home; this could be 10 percent or 15 percent of the cost of the repair. You may also have the opportunity to pay for insurance against eviction so that if a tenant stops paying rent, you won’t have to worry about court costs and legal fees.
Professional property management might seem expensive, but you get a lot of protection and peace of mind. Make sure you understand all the costs associated with your management agreement. Contact Moore Property Management if you have any questions about why professional management is worth the money.