Property Management Costs in Portland

hiring a professional property management company in Portland to manage rental homes, most owners want to know what it will cost. This is an important question, and you should never sign a management agreement or hire a property manager without understanding what you’ll be paying. However, make sure you’re comparing services as well as costs when you’re choosing a management company. You want to make sure you’re receiving value in exchange for your management fees.

The first fee you are likely to encounter is a leasing fee, which covers the costs of marketing your property, showing the home to prospective tenants, gathering applications, screening tenants, and executing the lease. Property management companies structure this fee in different ways. You may have to pay a flat fee, which can be a few hundred dollars, or you may be charged a percentage of the first month’s rent. In Portland, that range is usually between 50 percent of the rent and 100 percent of the rent. Choosing a good tenant and limiting your vacancy time will save you money in the long term, so be prepared to invest in excellent tenant placement. You need to know this process is being handled expertly. It costs money and takes time to thoroughly screen a tenant, and you don’t want a property manager who is going to skimp and cut corners on those things.

While the leasing fee is a one-time fee that you’ll pay as soon as a tenant is placed, the management fee is a recurring cost which you will have to pay every month. Again, different management companies follow different structures. Some companies may charge a flat fee. If you’re paying a flat fee, make sure you know exactly what you’re getting and whether additional services are available and extra. You’ll also want to know if you’re required to pay your management fee while the property is vacant. The percentage based pricing model is another way that your property manager may charge you. In this case, you will pay a percentage of the rent that’s collected. This is usually between eight percent and 12 percent of the monthly rent. Your property manager will deduct it from your rental payment before forwarding the rest of the income to you.

The leasing fee and the management fee are the two most common fees that you’ll be charged regardless of the management company you choose to manage your investments. There may be other common fees as well, such as lease renewal fees and set-up fees. If there’s a renewal fee, it should be lower than the leasing fee since you already have a tenant in place. Set-up fees usually range from $50 to $200 in Portland. Ask about any advertising fees, technology fees, administrative fees, or additional fees for inspections, paperwork, bookkeeping, or the service of notices. There might also be a maintenance mark-up in which the management company will charge you a percentage of the invoice. None of these fees are necessarily bad or unjustified, but you do need to know about them. Check your management agreement before you sign it, and make sure you understand what you’ll be paying and what you’ll be receiving in exchange for your money.

If you have any questions about the cost of property management in Portland, we’d be happy to answer them. Contact us at Burgess Elliot Real Estate.