As you likely know, a management fee is a fee that Property Management companies charge for managing your home.
Like leasing fees, property management companies in Central Indiana charge different types of management fees. Some use a percentage of rent collected like we do, while some charge a flat rate per property.
A common question we receive is, “What does my management fee cover?”
What Does a Management Fee Cover?
There are a variety of things a management company does to earn the management fee, including:
1) Collecting rent and disbursing those net proceeds, monthly, into your designated bank account.
2) Providing monthly statements that show your income and expenses. In addition, your management company should provide a year-end statement along with a 1099 for tax purposes.
3) Handling the day-to-day activities that may accompany your property, including any HOA complaints, roommate disputes, etc. There’s a whole list of items involved in the day-to-day management of a property.
4) We handle any and all maintenance issues on the property so that you don't have to, including emergency and after hours calls.
5) Obviously, there are other value added benefits that a management company may provide to earn its management fee. For example, we conduct detailed move-in and move-out walk-thrus for all of our properties. While this does take additional time, the reports prove to be very valuable when security deposit disputes arise.
Peace of Mind
The biggest way a management company earns its fee, in my opinion, is by making itself available 24/7 to handle any issue that may arise with the home. It creates peace of mind knowing that your property is being managed by a professional organization, who should be able to handle any issue at any time.
Providing a service like this is expensive. A well-run property management company has an enormous amount of overhead, including multiple insurance policies, licensing, company vehicles, technology, staffing, and office space.
For a comprehensive look at our pricing structure, check out our Pricing Page!
If you have any questions about our management fee, please don’t hesitate to contact us.