Utah Property Management Fees - South Jersey Real Estate Agent

There are a lot of different ways that property management companies in Utah charge their fees. You can?t presume that if you compare the property management fee charged on the monthly rental amount, whether a percentage or a set rate, that you are making a true comparison. Most Utah property management companies break their fees up so they can increase their revenue while having the ability to say they charge 8% or 10% when in actuality they?re really making closer to 12%-15% when you add up all their fees. In this article we?ll discuss the most common property management fees that you are going to encounter in Utah, and what to watch out for.

Utah Property Management Fees - The management fee

This is the main property management fee that?s charged every month as rent is picked up on your place.

Things to watch out for: is this fee picked up whether the property management company collects rent or not, or is it only charged as your property manager actually receives rent?

Utah Property Management Fees - Tenant leasing fee

This is a fee that is often times charged by property management companies, and it is normally 25%-50% of the first month?s rent and is collected to cover stuff like lease signing and renter procurement.

Things to watch out for: not all property management firms charge a tenant leasing fee. If your tenant moves out after one year and you were charged a 25% tenant leasing fee, and you?re paying your property management company 8% each month, you are really paying them a 10% management fee. The tenant leasing fee is viewed by some as a motivator for a property manager to sign shorter term leases or have a high rate of turnover.

Utah Property Management Fees - Tenant administrative fee

This is a property management fee that?s charged to the renter each month and is generally between 2%-5% every month. This adds on to the tenant?s rental amount each month. For example, if they?re paying $1000, their rent actually comes to $1050. Which means in the end it may just as well be added to management fee that you are paying every month since it is taken out of your rent.

Things to watch out for: This is a management fee, which might not be revealed to the property owner by the Utah property management company since it is being charged to the renter and not to the owner.

Utah Property Management Fees - Rental property marketing fee

Some property management companies will charge $0 for advertising and promoting, and some will charge over $500 to lease your property! The critical issue here is value - how much value are you receiving in comparison to how much they are charging you to lease your property? Is it reasonable?

Things to watch out for: most property management companies do not have a good system in place for advertising. They might stick a sign in the front yard and place your property on their Utah property management company webpage, and that?s it. But unless you?re getting full exposure on websites where people actually visit, out-of-state renters and in-state tenants, it?s hard to know if you ought to lower your price or if you?re really getting applications from the most qualified renters that you can.

All of these costs can add up quickly to lots of money one way or another and really make the difference of your property having a positive ROI or a negative ROI. It is important when you?re considering a property management company, that you have all of the details and costs, and look out for the things discussed above. Click here to let me know if you have any other questions or if you?re needing help with your place click Utah property management.

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