Property Management Fees For Single Family Homes – Managing the ownership of a Frisco Texas single family home can be more complex than managing a multi-unit apartment building. Many of the same types of issues occur, such as plumbing, pest control, electrical issues, etc., but when it comes to a single family home, you have to deal directly with the tenant.
Many property management companies specialize in the management of multi-unit buildings, but we are quite the opposite. We LOVE managing single family homes, especially in affluent communities like Frisco Texas.
Property Management Fees For Single Family Homes
We like to take care of the small investor who may only have a handful of properties, or even just one property, as opposed to dealing with the big boys who have invested billions in properties. We enjoy managing single family home properties in Frisco, TX because that’s how we started: investing in and managing single family homes. We were really good at handling that side of things, and our founders started asking other small investors for help, and that’s how North Texas Property Management was born.
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Indeed, for the first five years of the business, we built and grew it entirely on the recommendation of other investors, until the market changed and lending guidelines changed, making it more difficult for investors real estate agents to purchase additional properties to add to their portfolio. We have not done any advertising or marketing of any kind up to this point. And we still love what we do.
And of course, our experience means we know exactly where to advertise for tenants to get a lot of demand. We know how to check credit scores and get information on their behavior. Both are important because what you want as a small investor are tenants who will take care of your property and pay the rent on time. And with us as a single family home property management company in Frisco, TX, that’s what you’ll get. We only offer you tenants that we would be happy to have in our own properties.
We have also assembled a team of craftsmen capable of carrying out any type of work required on a property and of course we can supply them 24/7/365. This is also important because if a pipe bursts in a property and water floods the bathroom floor at 2 a.m., you need to find an emergency plumber fast. If you managed your property on your own, your tenant would call you and you would have to start looking for emergency plumbers in your pajamas. And suppose you’re going on vacation to Spain at that time?
When you hire us to manage your property, everything is taken care of automatically. Your property couldn’t be in better hands. Successful real estate investors understand that hiring a good property manager is more like an asset than an expense.
Residential Property Management For Single Family Homes
The best property managers help keep rental properties occupied year after year, increasing your return on investment and freeing up your valuable time so you can focus on growing your real estate business.
Property management companies generally structure their fees in two main ways, as a percentage of the rent collected or as a monthly flat rate:
Most property management companies charge a monthly fee of between 8% and 12% of the monthly rent collected. If your rent is $1,200 per month, the property management fee would be $120 based on an average rate of 10%.
If a property is vacant, management companies usually charge a fixed fee or a fee equivalent to the expected monthly rent once the property is rented to a new tenant. Vacant properties sometimes require more work from the management company, such as weekly inspections for potential burglaries or the presence of squatters.
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Some property management companies offer a fixed fee structure instead of charging fees based on a monthly rental rate. Fixed fees are generally based on the type of property, square footage, and property management services provided.
Typically, fixed property management fees for a single-family home can be around $100 per month, but management fees vary from market to market. While a fixed fee structure may seem like a good deal at first glance, management companies that charge a fixed fee may not be as motivated to maximize rental income from your property.
Property management fees are not always all-inclusive. Often, a property management company may charge you for additional services beyond the monthly fee collected:
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Most property management companies charge a one-time setup fee of around $300. The contract setup fee covers the cost of:
Managing a vacant property can be more labor intensive for a property management company than when your home is occupied by a tenant, as there are more potential issues that could arise.
Since utilities must remain on to display, water leaks may occur unexpectedly or security lights may turn off. The longer the rental property remains vacant, the greater the risk of break-ins or vandalism, even in the best neighborhoods. To help minimize these risks, the property manager should visit the property at least once a week.
There are many great free rental websites like Zillow, Zumper, Rentberry, and Rentals.com where you can list vacant rental property and reach millions of potential tenants each month. However, if you are a remote investor, you will still need someone on site to show your vacant rental property to potential tenants.
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While some property management companies don’t charge a fee to rent out a vacant property, most will charge a rental capital fee of half to one month’s rent.
When it comes time to renew the lease, landlords can save money. Many management companies charge a small fee — or sometimes no lease renewal fee — as long as renewing the lease doesn’t require a lot of negotiation with the tenant.
It’s generally a good idea for a landlord to charge a tenant a late fee if rent isn’t received on time. But a late penalty doesn’t always add up to extra profit. Some property management companies will retain between 25% and 50% of the late fees collected as compensation for having to chase the tenant to recover unpaid rent.
The best property management companies will have an established network of trusted vendors or a full-time in-house maintenance team. Since most vendors offer a preferred price management company in exchange for the manager’s activity, repair and maintenance costs should be lower than you might find on your own.
Leasing Services Single Family Homes Townhomes Condos
When interviewing potential property management companies, be sure to ask about any markup in labor and equipment costs. There is a caveat. If you are doing a significant amount of updating on your property, many management companies will charge a project management fee of around 10% of the project value to ensure the work is done correctly.
Typically, a residential rental property should be inspected inside and out every three to six months. Regular home inspections help catch and fix small problems before they become big and costly, and ensure the tenant doesn’t damage the property.
Some property management companies will perform a free semi-annual inspection. Others may ask you to pay per inspection, in exchange for a lower monthly property management fee. In any case, ask the property management company to send you a detailed inspection report, along with photos or videos, to prove that routine inspections are carried out.
Although it doesn’t usually happen often, there may be times when you need to evict a tenant for not paying rent, repeatedly disturbing the neighborhood, or destroying your rental property.
Single Family Home Property Management [manage Your Home Right]
Larger property management companies may have the expertise to handle evictions themselves, while others will outsource the work to a local law firm that specializes in residential evictions. Expect to pay a flat eviction fee of approximately $500 plus applicable legal fees.
When the eviction case goes to court and you get a judgment, collection agencies and attorneys typically charge a collection fee of around 50% of the money collected.
Unless the owner breaks the property management contract “for cause”, for example if the manager fails to perform as agreed in the contract, early termination of the property management contract will generally incur an early termination fee .
Termination fees can vary widely and can range from a month of lost revenue to the management company to a landlord being sued for breach of contract.
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Either way, the amount of the property management fee is based on the amount of work the property management company needs to do to keep your property in good condition and maximize rental income and value. For example, a small multi-family building with three or four units is more labor intensive for a property manager
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