The price you pay for professional property management in Dallas probably isn’t as high as you think it is, especially when you consider the value, services, and expertise that you get in exchange for your monthly management fee.
When you want to hire a Dallas property manager, make sure you’re measuring services as well as costs. Every management company will structure its fees differently, but there are a few commonalities that you should expect regardless of who you’re considering.
Here’s what you can expect to pay when you’re looking for professionals to lease, manage, and maintain your Dallas rental property.
Dallas Property Management Fee Structures
You’ll find that some companies charge a leasing fee upfront and then a flat monthly rate to manage your home. Other companies will charge a percentage of the rent that’s collected every month. When you’re comparing prices and services, make sure you’re understanding exactly what you’re getting. You might find a company that offers a dramatically lower price than other companies you’ve encountered, for example, but they might also charge a separate fee for each service they provide. So, by the time you’ve paid the administrative fee, leasing fee, marketing fee, and inspection fee, that low management fee isn’t so cost-effective.
You’ll want to know what’s included and what isn’t. You’ll also need to know whether you’re paying a flat rate or if the cost of hiring your Dallas property manager depends on the amount of rent your property earns.
Leasing and Tenant Placement Fees
The first fee you will likely encounter is the leasing fee or the tenant placement fee. Sometimes, it’s called a lease-up fee. Owners pay it at the beginning of a lease term when a tenant is screened and placed and the lease agreement is signed.
Typically, you can expect your Dallas leasing fee to cover:
- The market analysis required to price your property.
- Marketing and online advertising.
- Showings and tenant responses.
- Tenant screening in compliance with fair housing laws.
- Lease negotiation and execution.
- Collection of move-in funds.
- Move-in inspection reports with pictures.
Usually, your leasing fee will be lower when you opt for full-service property management. You can find companies who are willing to lease your home only, and then hand over the full day-to-day management back to you. If you’re considering that type of structure, you’ll likely have a higher leasing fee.
Dallas Property Management Fees
While the leasing fee is a one-time cost, the property management fee is paid every month and covers the day to day activities involved in managing and maintaining your investment property. It also includes rent collection, lease enforcement, tenant relations, legal compliance, routine and emergency maintenance, and inspections.
A good property manager will provide an accounting statement or report every month to show how much your property earned and what was spent. On that report, you should see the cost of your management fee reflected.
Additional Dallas Property Management Fees and Costs
A full-service, all-inclusive Dallas property management plan will provide a lot of value the expertise and resources that you can’t access when you manage your property on your own. By hiring a Dallas property manager, you won’t have to worry about collecting rent, following the Texas property code, understanding the eviction process, or handling security deposits.
But no one likes to be surprised, and that’s why it’s important you know about any extra fees or charges that may show up in your monthly accounting statement.
Sometimes, a management company will charge extra for things like setting up your account, conducting inspections, serving notices, or representing you in court during an eviction. A number of companies will also charge a mark-up on maintenance invoices when repair work needs to be organized.
Make sure you know about these extra costs ahead of time. Check the management agreement for what else you might have to pay, and ask your Dallas property manager if there are any additional costs to working with them that aren’t reflected in that agreement.
We’d love to tell you more about our competitive fees and what you can expect when you work with our talented team. Please contact us at Assign Property Management for more information.