Property management services can be broken down into two phases…leasing and monthly management.
The typical leasing fee for the Washington, DC metropolitan area is generally the same amount as first month’s rent and includes advertising, showing the property, locating a qualified tenant, screening the tenant and the moving in of said tenant etc.
Monthly management services general costs anywhere from Eight to Twelve percent (8-12%) in the Washington, DC metropolitan area. This fee usually covers the administration of an appropriate lease that protects the rights of the landlord, hiring contractors to provide maintenance and improvements to site (service costs are paid by property owner), keeping the property in compliance with area laws, day-to-day tenant relations including collection of rents/fees and providing owner with financial and property summaries.
Most companies that provide property management services also provide leasing services and vice versa however if a property is already leased an owner can choose to only use the monthly management option.
Hopefully, this break down of the typical fees for property management services was useful to you. Here’s to a stress free life as a “landlord” and continued growth in the success of your endeavor.
As many know Property Locators, LLC™ wants to work with informed consumers so in 2015 we are offering FREE seminars for buyers, sellers and landlords.
We will kick the year off with our first-time homebuyers class in January. A loan officer, home inspector, title and of course real estate agent will be on hand to share step-by-step tips with attendees on how to purchase their first home.
February will be the month in which we assist sellers with the best ways to get their property ready for the Spring market. Design, marketing and other industry experts will lead the discussion and provide invaluable tips.
With so many people venturing into the world of owning investment property March is dedicated to sharing with those individuals ways to make their investment profitable.
Registration for each class will begin approximately 30 days before each seminar however if you would like to get more information or be added to our guest list please contact Property Locators, LLC™ at firstname.lastname@example.org or 202 683-0158.
Hiring and entrusting your property for management to someone else is no easy feat and should not become another headache or to-do item for a property owner. To make the process easier I am suggesting you ask your potential property management company the following seven questions to see if the services they provide will be a good fit for your needs.
Question #1: How long has your company been in business?
Experience is a MUST for anyone you hire. Experience can come both formally (registered business for many years) or informally (provided the service for friends/family) but the company you are interviewing should be able share their prior experience with you.
Question #2: Am I allowed to meet the staff that will manage my property?
Whoever you hire to service your property serves as the spokesperson for your business so it is imperative that you have met them and approve of the way in which they communicate to and with the public because they are the first line of contact with the public and will determine the success level your business will reach.
Question #3: How does your company ensure training and education?
A trained employee stays on top of production levels according to the latest development of industry trends and knows governing laws for the area in which your property is located to provide efficiency and deter violations with the tenant or governing body. Additionally, some states require licenses and contining education training while others don’t so it’s always best to know what steps your potential property management company is taking to stay knowledgeable.
Question #4: What is your company's practice to provide effective communication?
With the advancement in technology companies are becoming more automated online versus using traditional mailings or telephone etc. so it is imperative that whatever method of communication said property management firm employs it suits your needs.
Question #5: What are the fees for using your service?
Before you hire a company you must know if you can afford them so please ask the representative what are their fees and what services are included in the costs Additional, typically a service contract is signed to protect the needs of both parties which clearly states obligations and fees for the duration of the relationship.
Question #6: What are the guarantees and commitments of your company for the services provided to me (or my tenant)?
Ask the potential management company how do they ensure superb service will be provided and if it is not being provided how it will be remedied.
Question #7: What are the responsibilities of your company for a breach of these commitments?
You don't want to hire a company and then realize your needs won't be met. Please ensure that you ask how will the contract be enforced or what methods are in place if management issues are not resolved or done in a manner that is satisfactory to you.
This is not an all exhaustive list for interviewing your potential property manager but it is a great starting point to ensure you will get a company that will meet your needs. If you are in the Washington, DC metropolitan area please consider Property Locators, LLC™ because we provide superior service and will exceed your expectations which we guaranteed with our 3 month money back guarantee policy.