It is a tale as old as time, sometimes the people we hire for certain services add superfluous hidden fees for things we may not even understand. In real estate, it is no different. If you are looking to hire a property manager to handle landlord responsibilities, it is important to look out for sneaky fees that may end up significantly reducing your profit.
Percentage Of Rent Due Vs. Rent Collected
Many property managers try to earn a profit by shaving off the rent. Be mindful of the wording of this clause in the contract though, while a fairly common clause, some property managers may take advantage. Percentage of rent due is based on how much your tenant owes you for rent, a percentage of rent collected is based on how much your tenant actually pays. The latter is typically more favorable as some of your tenants may not pay the full amount on time, but also you may end up paying your property managers even when the property is vacant.
Some property managers may charge a fee when it comes to drafting and securing a new lease agreement for a new tenant. This is a common “a la carte” fee, and the cost is typically low. It may be a red flag if the cost is high, especially if tenant turnover is high. A lease renewal fee is also commonplace, but be aware of the cost of the fee and make sure it remains lower.
Dealing With Eviction
Anyone who owns property knows the benefits of property managers definitely show when it comes to eviction. Eviction can be messy and most property managers will handle the process for from beginning to end. It comes at a cost, though. You may see some hidden fees here for extra work, but overall the whole process should only cost you a few hundred dollars.
The hallmark benefit of property managers is definitely maintenance. Property manager fee should cover the basic maintenance needs like plumbing and general repairs. You shouldn’t see any big numbers unless there are big jobs or you require inspection in between tenants.
Trust Clagett Enterprises For All Your Real Estate Needs
If you are looking for the perfect realtor for your property or to assist during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance in selling your home and getting the best possible price, contact us online or give us a call at 301-665-6609. To meet our team and see some of our beautiful homes follow us on Facebook, Twitter, Pinterest and Google+.