Hiring a property manager is a vital decision for owners of rental property, as PMs can help an investor manage their real estate portfolio efficiently. They’re experts at tasks like securing tenants, running background checks, and handling maintenance issues.
Or, if you’re looking to grow, they can even help you find an area with strong growth potential to invest in. The best part? You don’t even have to live there. The property manager can handle all the day-to-day responsibilities of the property, allowing you to focus on expanding your real estate business.
Before hiring a property manager, though, it’s always a good idea to get a picture of typical property management services and fees in a given area. Keep in mind that overall cost will be affected on the location of your property as well as the type of rental unit.
In this article, we’ll take a look at property management in Tucson and give you an idea of what to expect in this area.
Disclaimer: There are some scenarios where a management company (Evernest, in this case) may not be the best fit for you. In the video below, we review a couple ways you can know for sure.
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How much does it cost to hire a property manager in Tucson, Arizona? One major factor will be the location of your rental property. Fees are also dependent on property type as well as services included in your property management contract.
Leasing fees reimburse managers for the process of securing tenants, including:
For example, a landlord may need help finding a tenant, but would like to handle day-to-day management themselves. In that case, they could temporarily hire a property manager to help them secure a tenant and then do their own property management.
Often, leasing fees consist of a certain percentage of the first month’s rent. However, property management companies sometimes have a flat rate.
Many property management companies will offer several different membership options. They may also offer leasing fee discounts for premium membership tiers that come with more services. For example, if you choose Evernest’s platinum membership, there is no leasing fee.
|A Level Up Realty||Flat fee|
|Mynd Property Management Tucson AZ||Percentage-based|
|Real Property Management Rincon||Percentage-based or flat fee|
Property managers also charge a monthly fee to oversee a property. But don’t just compare prices; pay close attention to the list of items included in the service. Property management fees will also vary based on rental rate, property type, and number of units.
Property management costs can be a fixed charge or a monthly percentage. A flat fee is a fixed amount of money you will pay monthly; a percentage-based fee is a portion of the rent collected.
|Company||Monthly Fee Type|
|Rentals America||Flat fee|
|A Level Up Realty||Percentage-based|
|Mynd Property Management Tucson AZ||Flat fee|
|Real Property Management Rincon||Percentage-based|
|Evernest||Percentage-based or flat fee|
Your property management company will handle all the routine maintenance required on your property. They will also handle repairs whenever they are needed. Local suppliers often offer management companies preferred pricing in exchange for their business. This allows management companies to arrange cheaper repair and maintenance costs than what you could typically find on your own.
Property managers will organize repairs to be completed when needed. Most companies require landlords to have a certain amount of money set aside for repairs. Your property management agreement will lay out the amount you need to keep in your reserve repair fund as well as how you can authorize the use of these funds.
The lease renewal fee covers the cost of negotiating the renewal of a tenant’s lease. Like the leasing fee, this can be charged by a percentage of monthly rent or by a fixed amount. Not all property managers charge leasing renewal fees.
Property managers may still charge the full management fee even if your unit is empty. Other property managers charge a vacancy fee instead. Unoccupied properties need to be routinely inspected for insurance purposes. The vacancy fee covers the cost of these regular inspections.
The tenant placement fees cover the expenses of securing new tenants for vacant units. Again, these fees can be a flat amount or a certain percentage of the monthly rent. Tenant placement fees include the cost of advertising the vacant unit, screening prospective tenants and preparing the unit for move-in.
As a landlord, you will need to prepare for the unfortunate possibility of evicting a tenant. Your property manager will help you with the eviction process, should the need arise.
Some property managers include an eviction guarantee in their higher management tiers, others charge an extra fee to handle evictions. Eviction fees are typically a few hundred dollars, as well as any court costs that might come up.
Routine inspections of your property help to make sure that your tenant is not damaging the property. They will also help you identify and repair problems before they become major and cost more to fix. Property management companies often charge fees for regular inspections.
If you terminate your contract with your property manager before it is over, many companies will charge an early termination fee. These fees depend on the property manager’s policy and will be detailed in your contract.
Here at Evernest, though, we have a 100% Happiness Guarantee. If you are dissatisfied with our services, you can cancel the management agreement at any time, without paying a termination fee.
Final property management costs are affected by many different things. That’s why most of the fees we discussed were listed as ranges. Here are a few factors that will likely impact your final cost:
Are you thinking of investing in the Tucson market? Let Evernest assist you in reaching your goals and building your real estate business.
We’ve made it our mission to take the hassle out of property management and help our property owners achieve consistent returns on their investment. Plus, if we can’t find a qualified renter for your Tucson unit in 21 days or less, we’ll give you your first two months of management for free.
Send us an inquiry today and we’ll help you get started!
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