The cost of hiring a property manager or a property management company varies greatly depending on their services. If you’ve been thinking of hiring a rental property manager to manage your residential or commercial properties, but are quite unsure which property management to hire because of varying fees and services, then you’ve come to the right place.
Why Do You Need a Property Manager?
As a full-service property management company in Houston, we encourage property investors to take advantage of property management services. For one, it frees them from all the complex and time-consuming tasks of managing a property and taking care of all the tenant needs, 24/7. Also, everything becomes simpler with a property manager by your side. Property managers are, among other things, licensed real estate agents and brokers who are up-to-date on all the current fair housing laws and landlord-tenant laws in Texas. Basically, they are the experts when it comes to preserving the value of your property while maximizing its income.
You might want to check out our post about the specific tasks and key roles of a property manager and how hiring one can add value to your rental property.
We believe that doing your own due diligence is the key to finding the perfect property manager who can reward you with a worry-free investment. By doing so, you’ll have the time to create your own criteria for selecting the right property management company based on your property needs.
How Much Do Property Managers Charge in Houston
Shopping around for a property manager will get you a rough estimate of the fees involved. To start, there are different types of fees property managers charge such as…
- The Standard Property Management Fee is the basic percentage of the rental fee and either a flat rate or a combination of both.
- Additional Property Management Fees are for services that are not included in your contract, such as vacancy or eviction fees.
The Standard Property Management Fees
Initial Setup Fee
The initial setup see or onboarding fee is usually a one-time payment of $500 or less per unit; sometimes the equivalent of one month’s rent. The sign-up fee can cover:
- opening a bank account in your name, if needed;
- setting up your account for bookkeeping with the company;
- initial inspection of the rental property for evaluation
- assistance with applying for required tax or business licenses
- welcome package for tenants
Monthly Management Fee
The monthly management fee is the fee to manage your property on a monthly basis, which is 8-10%. Your contract will specify how it’s calculated and the services it covers. Your monthly fee could either be a flat fee or a percentage fee.
Percentage of Rent – the percentage of rent fees and percentage-based fees, which is usually between 6% and 16% of the monthly gross rent and also depends on the services, property type, etc.
Percentage of Rent Due – same amount/percentage every month regardless of whether the property is occupied
Percentage of Rent Collected – amount/percentage every month only when the unit is occupied
Flat Fee – between $70-$400 per month depending on the services. This is often for large rental properties with multiple units.
Maintenance Fee
The maintenance fee is usually included in the monthly management fee depending on your contract, but there is an additional fee for specific repairs not included in the agreed management areas.
Á La Carte Property Management Fees
- Tenant Placement or Leasing Fee (1 month’s rent or 25%-75 % of the first month’s rent which covers advertising cost, tenant screening, touring, and move-in inspection)
- Lease Renewal Fee (about $200)
- Advertising FeeVacancy Fee (fixed fee or a one-time fee of one month’s rent upfront per vacant unit until a new tenant signs the lease; covers weekly inspections to prevent break-ins or squatting)
- Eviction and Collection Fee ($200 to $500 per eviction, plus any associated legal costs)
- Routine inspection Fee (some property managers will charge per inspection and charge a lower monthly management fee
- Late payment Fee (20$-50% of collected late fees as compensation for gathering unpaid rent)
- Early Contract Termination Fee (one month of lost income, or as far as suing the property owner for breach of contract)
Although there’s a wide range of prices property managers charge, here in the East Bay the general range is anywhere from five to eight percent. For instance, if your monthly rent was $2000, then a property manager may charge you up to eight percent of that rent.
Upfront Transparent Pricing with Apogee Properties
We are local and we stand behind our service with our upfront transparent pricing to manage your property. Check our property management fees.
Is a property manager worth it?
Shop around for a property manager to ensure you get good service for the right fee because the one with the lowest cost isn’t always the best. It may seem like a good deal now, but it will eventually cost you in the long run.
There are many factors that influence property management costs in Houston. Depending on the level or extent of services rendered, property size, property type, property condition, or location, management fees will vary.
Now that you have a better understanding of the actual costs to hire a property manager, time to get a quote. If you have any questions about property management services and fees, feel free to contact Apogee Properties. We want to help you make an informed decision about which company or service is right for you.
Work with Apogee Properties
Apogee Properties is Houston’s Premier Property Management Company. We work and live in Houston, and our property managers are local. We’ve been in business for more than a decade, providing comprehensive property management services in the Houston region, ranging from a studio condo to a multi-family million-dollar estate. Contact us to learn more about our property management services, and what we can do for you and your rental property.
Get your property managed today!
