WHAT'S UP WITH MANAGEMENT FEES?
Any property manager will charge you a monthly fee to maintain your property, whether it be a flat fee or a percentage fee. This is perfectly reasonable and expected.
HOWEVER — why are there so many managers tacking on so many additional fees on top of their monthly rate? We’re going to dive into all the common fees associated with property management and how they affect your bottom line.
These fees are usually found in the small print of your property management contract. The more you collect, the more likely it is you are paying WAY too much for your property manager.
Retaining Tenant Late Fees
Lease Renewal Fees
ARE THEY REALLY NECESSARY?
In Short – No
So why are you paying them? Many companies don’t have your best interest at heart. They care more about finding ways to nickel and dime your net revenue over focusing on what’s Really important.
That’s you. That’s your appreciation. That’s your bottom line.
Notice the numbers next to those fees up there? That is how much you would be charged IN ADDITION to whatever monthly management fee was advertised.
Say your property manager charged you 7% gross rent on a $1,000 per month unit. That would be $70 each month or $840 a year.
Let’s do a little math. We’ll assume your unit was leased 11 out of 12 months during the year at the advertised “7%” rate ($770).
Now we’ll add the fees:
$11,000 – $770 – $740 = $9,490
$11,000 ÷ ($770 + $740) = 13.7%
As you can see, your true management rate is CONSIDERABLY higher than what was advertised. If your manager charges you more than 7%, say 9%-10%, you could be paying a fee as high as 17%!
This is why transparency is essential.
WHAT ABOUT ASHBROOK?
Ashbrook does not embrace the crude nonsense of ineffective operation like so many of our peers.
We deliver transparent rates and cherish every new relationship that comes our way.
These days, that’s called honest service and it’s the bedrock of driving your real estate into high performance, earning you the respect and cash flow you deserve.
Enough about us—let’s talk about you. Whether you own a single rental or navigate through a large holding portfolio, you need a management solution that takes care of the dirty work so you can focus on what you do best.
It’s easy to get started—you’ll be stress-free in no time.