What Are Professional Property Management Fees in Austin, TX?
System - Monday, October 30, 2017
The cost of property management varies a lot. In greater Austin, you can expect to pay between 6 percent and 15 percent of your gross monthly rent. That’s a big range, and there are several factors to consider.
Measuring a Property’s Requirements
If the property has an HOA, there may be more to manage. And, there’s a big difference between managing a home that was built in 1930 and a home that was built just a year ago. Older homes will have more work associated with them, including repairs, so the management might be more expensive. Most property managers will view the property and assess its condition before agreeing to take it on. If a major remodel or many repairs are needed before the manager can rent the property out, the management fee may be higher.
Read the Management Contract
Read your contract. It will probably be long, but it will be worth your time to comb through it. Any reputable property management company will give you adequate time to review the contract and not do a hard sale that pressures you to sign it. In the contract, look for minimums you’ll pay and whether there’s a charge when the property is vacant. There may be a leasing fee. In Austin, most leasing fees are between 75 percent and 100 percent of the first month’s rent. Ask these questions before you sign your contract.
Additional Management Fees
In addition to the management and leasing fee, you might find other costs. Ask if there’s a mark-up on maintenance invoices, or if there’s a lease renewal fee. Most people overlook this, but your contract might stipulate that if you sell the house in a year or two, you have to use that company to sell it. The length of the contract could be 12 months or 24 months or 30 days. These are important factors that will impact the cost of your management services. Understand every fee and ask questions if you don’t understand something. You want to be certain you’re getting a good value.
Ask if any guarantees are offered. If I place a tenant and they default within 90 days I will refund your money. I believe every property manager should do that.
Read your contract thoroughly. Work only with reputable managers, and look for hidden costs. No one likes surprises. If you have any questions about Austin property management and its associated costs, please contact us at Peach Blossom Properties.
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