What Fees Should You Expect From Property Management Companies in Utah?
Managing your own property can be exhausting and time-consuming. When property management isn’t your only job, it can be hard to balance taking care of your rental with your career. Most property owners don’t have the time to manage paperwork, keep up on repairs, maintenance, and take care of their property. That’s where a property management company can step in and take the load off. Hiring an experienced property manager or company can take the stress out of owning a rental, while saving you time and money in the long run. So, if you’re looking into property management companies in Utah, you might be wondering how much these services will cost you. Fortunately, Wolfnest is here to breakdown what fees you can expect and how our property management services can help you get the most from your rental property.
Typical Property Manager Fees
While fees can vary by location and company, there are typical fees that most property management companies in Utah charge. These fees are divided into two categories: owner and tenant. As the names suggest, there are charges that the owner is required to pay and there are fees that fall to the tenant. To start, let’s breakdown what fees the owner can expect.
Another obvious name, this one-time fee is for setting up a new account within the property management company. This can range anywhere from $0 to $300. The wide range can be attributed to whether the company charges a fee per unit or per property. They may also change the fee depending on whether the unit is occupied or not. Additionally, this fee could cover an initial inspection and introductory materials to the existing renters to tell them about their new property manager. A set-up fee is common practice and has become a requirement amongst property management companies in Utah.
A management fee is what you’ll pay each month for your property management services. This is typically a percentage of the gross collected rent, but may also be a flat fee depending on the company. A management fee varies by market, but property management companies in Utah usually charge between 7-10% of the gross collected rent. The services that are covered by this monthly payment include:
- Day-to-day management of the property
- Collecting and processing rent
- Conducting property inspections
- Coordinating repairs
- Communicating with renters
- Handling emergency maintenance calls
Property manager fees keep your rental running smoothly and keeps your tenants happy overall. A dedicated property manager can make all the difference.
One of the most common fees that occur in property management are maintenance-related. This can also be one of the most expensive areas of owning a property without an experienced management team. Maintenance is usually sudden and unexpected, so it’s helpful to have a property management company that has relationships with various repair companies. Monthly maintenance fees typically hover around 10% of the rent, but can vary depending on the property management company.
These are the most common fees that owners have to pay for property management services. However, tenants will also have fees. So, what charges can your renters expect from a property management company?
Not every landlord or property management company requires an application fee, but it’s a good idea to have one. Tenant application fees typically range from $30 to $75 per person, and are usually used for background checking. This fee narrows down future tenants to the highest quality applicants. Usually if there’s an application fee, there will be people who can afford it, show interest in the property, and pay for an application. This simple fee also lowers crime rates since this charge could go towards screening. During this process, you can also ask the applicants about their income to assure it won’t be a problem when it comes time to pay rent.
In addition to the monthly rent, there are other fees that tenants can expect. These include, but are not limited to:
- Late fees – Typically 10% of the monthly rent, this is required when a tenant’s rent payment is late and is a fairly common fee amongst rental properties.
- Month-to-month fees – Once a lease has ended, the renter can choose to stay in the property on a month-to-month basis, in return for paying an additional fee. . This ranges anywhere from $25 to $200 depending on the property.
- Service of notice fee – If a tenant hasn’t complied with their lease, this fee pays for the process of a property manager posting a notice to fix the violation or risk eviction.
Additional rental fees are at the discretion of the property management company, as well as the owner. These certainly vary from property to property and can be customized to suit the needs of your tenants as you see fit.
Why You Should Pay Property Manager Fees
Putting your property in the hands of someone else may seem scary, but it pays off in the long run. At Wolfnest, we understand that you’re busy and managing your property may not be your full time job. Luckily, it is our full time job and our property managers are experienced and professional. So, while property manager fees may seem intimidating, they help your property succeed and stay profitable. If you’re ready to hand over the reins, we’re ready to start managing your property. We offer a variety of services including:
- Single-property management
- Multi-family property management
- Portfolio management
- Property management and leasing
- Renter placement
As one of the premier property management companies in Utah, we know how to help your property succeed. With our proven services, you no longer have to worry about the day-to-day of your property and will still get to enjoy the benefits. So, contact us today and let us help you get the most from your rental property!