9 Sneaky Fees to Watch for When Hiring a Property Manager

To many landlords, property management services are superfluous, cutting their profit margins to a minimum in exchange for basic services. But the reality is that property managers can make your life extraordinarily easier—and most

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charge a reasonable enough rate that you can draw a monthly profit from your properties (headache-free).

However, when you’re searching for a property manager to handle your landlord responsibilities, it’s important to note that not all fee structures are the same. If you don’t understand how a manager’s fees work, you won’t be able to compare apples to apples, and you might end up shaving your profit more than necessary if you aren’t prepared for those fees when they come up.

9 Fees to Watch For

These are some of the most common “hidden” fees, extra fees, and differences in fee structure to watch for when comparing providers or finalizing a contract:

1. Rent Due and Rent Collected

Many property managers will charge fees as a percentage of rent, but watch how this is worded—there’s a difference between charging as a percentage of rent due and a percentage of rent collected. A percentage of

rent due means your company will charge you based on how much money a tenant owes you; a percentage of rent collected means your company will charge you based on how much money a tenant actually pays you—and is generally more favorable. If you’re charged based on rent due, you’ll end up paying for property management even when your property is vacant and you have no money coming in.

2. Early Cancellation

You may also be charged an early cancellation fee should you break the contract with your property manager before the end of its outlined term. For example, if you agree to work with them for a year and you want out after eight months, you might pay an additional few hundred dollars. Be especially wary of this fee with untested property managers.

3. A La Carte Management Fees

“A la carte” management fees refer to a suite of extra fees a property manager may charge you in addition to basic services. Usually, a property manager will either charge a higher price (and no additional fees) or a lower price, with multiple additional fees, somewhat evening out. Accordingly, it pays to know what fees are applicable and what they might run you. The remaining items in this list could all be classified as a la carte management fees.

4. Vacancy

If a company isn’t charging you the full cost of management while your property is vacant, there may still be an additional vacancy fee. Rather than collecting a percentage of rent due, they may collect a smaller amount from you as a kind of retainer.

5. Advertising

When it comes time to seek a new tenant, some property managers may charge you an additional advertising fee. This would cover the cost of creating media (such as taking photos) and placing it on sources like online listings or paper publications.

6. Leasing

A leasing fee may apply when you find a new tenant for your property. This covers the cost of drafting and securing a new lease agreement and is generally low in cost. If the cost here is high, it should raise a red flag, especially if your resulting tenant turnover seems to increase.

7. Lease Renewal

Lease renewal is even simpler than initial leasing, b

ut it may still require a fee. You may need to draw up new paperwork or renegotiate terms with a tenant, and that means your property managers will be doing a bit of extra work. Expect minimal fees here as well.

8. Maintenance

Property management fees should cover basic instances of maintenance and repair, but some companies may charge extra for big jobs, or for an inspection between tenants.

9. Eviction

Eviction can be a messy process, and if you ever need to evict, you’ll be grateful you have a property management service in your corner. Most property managers will handle the eviction completely on your behalf, but some will charge you an extra fee for the extra work involved. Expect to pay at least a few hundred dollars for this process.

Apples to Apples

Different companies might charge money in different ways, but if they’re offering similar services, you’ll likely find the bottom-line price of each to be competitive with one another. The big difference here is how you plan on using your property management company; for example, if you’re looking for long-term arrangements, an early cancellation fee shouldn’t factor much into your decision. Try to consider all these factors and all price points when comparing providers and making your decision.

Source: biggerpockets.com

Is landlording causing you to experience excessive “noise” in your mind?

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Is #landlording causing you to experience excessive “noise” in your mind? Does it get worse when you have a #TenantProblem or #PropertyIssue?#BevRobertsRentals is crucial to maintaining sanity. Through Bev Roberts Rentals, close your mind to distracting and disturbing thoughts, and enjoy inner peace and happiness. Unravel your mind with Bev Roberts Rentals, before it unravels you.

Deadbeat Partial Payments

ask-the-attorneyThe Landlord Protection Agency®presents John Reno, Esq.,a highly experienced Landlord – Tenant attorney based on Long Island, NY.

Q:  Dear Mr. Reno:

My father passed away and left a rental house to my brother and I . The person living in the house has been there around 15 years. On the agreement that was signed by my parents and the attendant was for a one year lease and that the rent would be 100.00 a week. This home is in Tuscaloosa , Alabama.

1. The attendant is thousands of dollars behind in his rent. Over the years my parent let him slide. The attendant always had some problem to prevent him from paying, my question is can we have him evicted for not paying rent if there was never a renewal of the lease or anything that we can find that state he can live there regardless?

2.. We have received around 400.00 for the last 6 months. Question is : he was told that if he didn’t pay is rent for the month of June we were going to evict him. We received a check for 100.00 at end of June and just received a check for 350.00. Can we cash these.? Been told if we did take even partial payment that it would mass up getting out of the house. Is this true or can we cash the checks.?

Thank you or your help

Brittney, Tuscaloosa , Alabama

A: 1. Take the $. 2. Serve Notice of Default; let him know what you think he owes. 3. Start eviction for non-payment. Good luck.

Legal Disclaimer
The Landlord Protection Agency’s “Ask the Attorney” column is for informational purposes only. The questions answered by Mr. Reno on this site do not constitute an attorney – client relationship and are not to be considered legal advice. Not all questions will be answered and some may appear in the LPA Q&A Forum.
The Landlord Protection Agency recommends that you seek legal advice before using any of the material offered on this web site, and makes no guarantee on the effectiveness, compliance with local laws or success of any of the material offered on this web site. The Landlord Protection Agency is not engaged in rendering legal advice.

Do what you love and you’ll never have a problem with Monday!

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We are a family owned and operated business that share a love of leasing and property management. We believe that working together as a family gives us an advantage over our competitors and has been the key to our success. It’s been proven that family owned businesses are more stable, have a longer time horizon and tend to have a high level of trust and commitment to customers, because how the company behaves reflects the family’s personal integrity. We have infused our core values into our company and it shows! As a family owned and operated business, we have a better understanding of our customers values, expectations and needs.

The Best Leasing and Property Management Firm in Wake County.

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Finding the best property management company for your home can be a complex task. Our busy real estate market presents dozens of management companies that you can choose from, and they might seem very similar at first glance. How do you determine which property management company will provide you with the best service? If you’re interested in learning more about the benefits of a professional property management company and what we can do for your home, contact Bev Roberts Rentals, the Triangle’s leading property management company. (919) 306-5665

A Skilled Property Manager isn’t Cheap & a Cheap Property Manager isn’t Skilled.

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Why The Cheapest Property Manager Isn’t Necessarily The Best

When it comes to choosing a property management company, it’s worth paying attention to that age-old saying that ‘you get what you pay for’.

Choosing the cheapest property management company may seem like a good idea at the time, particularly if you’re feeling the pressure on your bank balance after purchasing an investment property, but cheap is not satisfactory when it comes to protecting your very valuable asset and it’s important to choose wisely.

Very simply, property managers aren’t all equal and quite possibly, the one that’s offering its services at the lowest fee could also be the one that delivers the least amount of value.   Of course, as a property investor, you would be looking at maximizing the returns on your investment so you wouldn’t want to waste money, but saving a few dollars on cheaper property management upfront could very likely cost you a lot more over the long run.

Let’s look at why price is misleading when it comes to making a choice of property manager.

Firstly, you need to evaluate what the property manager is offering for that price. You should ascertain how many properties each person manages and what services they provide. If they have a multitude of properties on their books with only one property manager looking after them all, they could end up being too busy to focus on the important details of your investment.

You should check how often they will be performing inspections and whether they will be corresponding directly with the tenant to handle any maintenance requests and so on. Very often, a property management company that offers its services for at a very cheap rate will do little more than place tenants and collect rent every month, leaving the property owner to do all the running around.

And that brings us to another very important point – quality of tenant. A reputable property management company will have an extensive database of prospective tenants and a proven strategy for attracting quality tenants quickly and efficiently.   And that’s important because if the leasing real estate agent isn’t totally focused on getting your property tenanted with the right type of person as quickly as possible, you could end up with costly vacancies or a high turnover of inappropriate tenants.

The best property managers also know their areas very well, and they’re able to make informed recommendations about what rents can realistically be achieved, what property upgrades are necessary in order to make the property more marketable or if anything can be done to attract a higher rent, etc. They are also proactive when it comes to alerting owners when leases are due for renewals, advising owners of changes to state and federal regulations.

Warning bells should ring if a property management company that is offering cheap rates has a reputation for high staff turnover.   If the employees aren’t happy, you probably won’t be happy either.

Ideally, your property manager should pride themselves on their ability to communicate and the way they diligently return phone calls – as they do at Bev Roberts Rentals, Inc., leaders in property management in the North Carolina Triangle Area.   Another thing that sets Bev Roberts Rentals, Inc. apart from their competitors is that each property owner has a single point of contact with one real estate agent from leasing to property management within our company – and that’s not something that happens too often in the property management game. In addition We are a family owned and operated business. We believe that working together as a family gives us an advantage over our competitors and has been the key to our success. Our family is committed to outstanding customer service that goes beyond normal client expectations. It’s been proven that family owned businesses are more stable, and tend to have a high level of trust and commitment to customers, because how the company behaves reflects the family’s personal integrity.

If this level of service appeals to you, feel free to contact one of Bev Roberts Rentals professional property managers at (919) 306-5665 or visit our website to see what personalized property management service looks like at http://www.RobertsRentals.net.

Ask The Attorney: Tenant Threatening to Sue

ask-the-attorneyThe Landlord Protection Agency®presents John Reno, Esq.,a highly experienced Landlord – Tenant attorney based on Long Island, NY.

Q:  Dear Mr. Reno:

I had a tenant who vacated and did not clean the home and there was close to $1,400.00 in damages which he refused to pay. I had 21 days to return his security deposit and I completely forgot because I was so overwhelm with the work that had to be done to the home. He sent me an email reminding me that I was late. I apologized to him and told him I would it send right out. He preferred to pick it up. His $3500.00 security deposit was minus the cleaning and the damages. The next day he spoke with a Lawyer and he threatened me with legal action and that he was entitle to a full refund of his security deposit. He took no ownership for his actions. I did return the remaining deposit because I had no time to go to court.

He rented the place for 3 years and he did not qualified to rent the home per our Property Management Company. I gave him a chance. I also told him before all this that if was to leave before the end of the lease I would only charge him for the days he will be there.
I would like to have my portion returned to me. Can you help me.

Regards,
Albert C., Clayton ,CA

A: You have won a no expense paid trip to small claims court to sue for your $1400 plus whatever. Good luck.

Legal Disclaimer
The Landlord Protection Agency’s “Ask the Attorney” column is for informational purposes only. The questions answered by Mr. Reno on this site do not constitute an attorney – client relationship and are not to be considered legal advice. Not all questions will be answered and some may appear in the LPA Q&A Forum.
The Landlord Protection Agency recommends that you seek legal advice before using any of the material offered on this web site, and makes no guarantee on the effectiveness, compliance with local laws or success of any of the material offered on this web site. The Landlord Protection Agency is not engaged in rendering legal advice.