Flat Fee Property Management: How It Differs
Homeowners planning on renting their property have plenty of things to think about when it comes to seeking tenants. Among them is whether to hire a property manager and – if so – what’s the most clear-cut way to pay.
Management 1 Tri-Cities Realty & Property Management, the only “flat-fee” property manager in the Tri-Cities area of Richland, Kennewick and Pasco, suggests considering the benefits of flat-fee property management before making a decision.
Most property managers charge a percentage-based monthly management fee, asking for a certain percentage of the monthly rent charged to tenants. For instance, if a property manager uses a 10 percent fee model, the property manager would receive $100 if the monthly rent was $1000 and $150 if the monthly rent was $1500.
Under a flat-rate model, a property manager charging a $100 monthly fee would charge the same fee whether the property rents for $1000 or $2000 or more a month. What’s that mean for the homeowner?
All homeowners pay the same flat fee for services regardless of the size of the home or the amount of rent collected. All homeowners are also treated equally, as no one property enrichens the property manager over another. The owner of a small single-family home could pay the same fee as the owner of a luxury ranch or waterfront home. That means no haggling over what percentage to charge. And it is almost always a cost savings for the owner of higher rent properties.
From a management perspective, it takes the same amount of time to collect and process rent for everyone. Maintenance often depends on the upkeep of the home prior to it going on the rental market rather than the size. Management 1 Tri-Cities Realty & Property Management believes it makes sense to charge all homeowners the same affordable flat fee.
Homeowners contracting with Management 1 Tri-Cities pay a $99 per month flat fee per home/unit for property management. No management fee is charged until the property is first rented, which keeps the pressure on Management 1 Tri-Cities to find a new tenant as quickly as possible.
The homeowner pays a $499 flat fee per lease placement fee when a new tenant moves into a property, which can be between half, to four times less than what local competitors charge. The placement fee covers all tenant background investigations/screenings and lease signings as well as gold star advertising when the property is vacant. No placement fee is charged for a new property with existing tenants.
Lease renewals, revisions and legal updates are only $99 per occurrence, and often at owner discretion.
What are some other reasons to contract with Management 1 Tri-Cities? Its pricing often beats competitors and it gives homeowners the opportunity to take a hands-off approach to operating their rental and investment property, especially those on a tighter budget. That means homeowners don’t have to worry about tenant relations, rent collections, maintenance issues, complaints and other headaches that often come with renting property.
The realty and property management firm extensively screens all adult applicants, determining not only their ability to pay but also whether they have ever been evicted or have a criminal history. Always carefully following Fair Housing guidelines, Management 1 Tri-Cities believes that selecting the “right” tenant is extremely important and is careful to make the best choice.
Repairs and maintenance can be coordinated and managed at no additional charge. Management 1 Tri-Cities maintains comprehensive affiliations with local contractors, plumbers, handymen, electricians, house cleaners and more, and can handle any repair or maintenance quickly and affordably.
Management 1 Tri-Cities is the A+ rated full-service residential rental property management company that Tri-Cities homeowners need to enable them to take a hands-off approach to operating their rental and investment property.
For more information on Management 1 Tri-Cities Realty and Property Management, visit http://management1tricities.com or call 1-800-205-M1TC (6182).
Address: 5414 W. 24th Ave., Kennewick, WA. 99338