When you're looking for Indianapolis property management, you need to be aware of the fee structures you may encounter and more importantly, the services that go along with those fees. Today, we're talking about what you can expect.
Everyone is prepared for this fee. It can have a wide range, from six percent per month to 12 percent per month, based on the gross monthly rent. The services that go along with this fee are tenant relations, vendor relations, and all of the things that happen during the month. It includes interfacing with owners, tenants, and vendors, including financial transactions.
The leasing fee is a periodic fee and it’s usually a percentage of one month’s gross rental income. It’s charged when a new tenant is acquired. This compensates the management company for the costs associated with acquiring renters, prospecting the tenant, doing the screening, executing the lease, collecting the deposit and the rent, and moving the tenant in with an inspection.
Some companies charge a renewal fee on a fixed basis or they can do something on a percentage basis, and the cost is significantly less than the leasing fee. This covers the time that’s necessary to spend with a tenant to talk about rent increases. You don’t want to tell the tenant rent is going up; you want to engage with the tenant and talk about the new rent or the changes that might be happening in the lease. This is building the tenant relationship and providing value to your tenant.
This could be a surcharge or an extra charge that shows up on your maintenance invoices. It compensates the management company for performing the maintenance function. They might send out their own maintenance person or find the right vendor and send that person out to do the work.