While not insignificant, fees for property management services in Vancouver are a small price to pay considering the peace of mind investors enjoy knowing their property is well-maintained while they receive a steady stream of rental income. Nevertheless, if you’re considering hiring a professional property manager, you probably want to know more about property management costs. So let’s take a closer look.
The first thing to understand is that property management costs in Vancouver and other markets will vary depending on the services you receive. As such, it is always important to find a property manager that offers a full range of services at an affordable cost. Moreover, there will be a difference in cost depending on whether you’re looking for property management or leasing services.
Property Management versus Leasing Services
Property management services are designed for clients who want to take an entirely hands-off approach. In this case, property management costs will typically be much higher and services include but are not limited to rental assessments, marketing, open houses, tenant screening and selection, security deposit and rent collection, property inspections, and regular maintenance.
On the other hand, leasing services are for owners who are happy to manage and maintain the property independently but prefer to use a professional service for screening and selecting tenants. Leasing services are similar to property management services in that they may include rental assessment, marketing, open houses, and tenant screening and selection, but property management services tend to be more comprehensive. For example, you shouldn’t expect maintenance or emergency repairs to be included in your leasing services.
Breaking it Down
Ultimately, property management costs will encompass a number of different fees. Depending on the firm you ultimately work with, you can expect costs to include management fees, vacancy fees, start-up fees, and leasing fees.
Management Fees
These fees refer to the overall costs of managing your property and will depend on the number of properties managed, the number of units in the property, the location and condition of the property, and the various services negotiated in your property management contract. Typically, management fees will range from 5-15% of the monthly rent.
Vacancy Fees
Some property management companies will charge you even if your rental unit is unoccupied. This fee may be less than what is charged when the property is rented, or it may be the same. You need to ensure to ask your property manager about costs if there is no tenant (and therefor no rent collected).
Start-Up Fees
When you initially start working with a property manager, they may charge a nominal start-up fee. This is usually a one-time charge, and can range from zero to several hundred dollars.
Leasing Fees
Finally, some property managers want to be compensated for the extra time spent screening and selecting tenants for your rental property while some include this in their management fees. Make sure to discuss all the costs associated with property management before you sign a contract. offshore centre