The cost of hiring a property manager can vary, but it largely depends on your property’s market. Factors such as the type of property and the level of services you want can affect the total cost of property management.
Working with a property manager is valuable because it saves you time and makes it possible to invest in real estate outside of the city where you currently live. This means you can invest in markets with strong growth potential, like Orlando, where home prices were up 19% from last year. As of June 2022, the median home price was $375K.
If you want to invest in the Orlando market, we’re here to help you understand what to expect in terms of leasing and property management fees. This article covers fifteen different property management companies in the area and the various fees they charge.
Before we begin, it’s important to know there are instances when a property manager (specifically, Evernest) might not be a great fit for you. In this video, we show a few ways to know for sure:
The first fee to be aware of is a leasing fee. The leasing fee covers the work involved in finding a tenant for your rental property. This could include the following services:
You can also choose to work with a property manager during the leasing period only. Once a tenant is placed, you can opt to handle the ongoing management yourself.
Leasing fees can be fixed, but they are usually calculated as a percentage of the first month’s rent. In the Orlando area, the average leasing fee generally runs from 50% of the first month’s rent on the low end and up to 100% of the rent on the high end.
These fees are listed as ranges because it’s common in the Orlando market to see companies offer lower leasing fees with their premium membership tiers. Examples include Evernest, Specialized Property Management, and Mila Realty.
|Company||Leasing Fee (% of first month’s rent)|
|Specialized Property Management||60-100%|
|Re/Max 200 Realty||60-100%|
|Mila Realty||$400 to 100%|
|Legends Realty||50% or $500|
|Key Real Estate and Property Management||75%|
|Innovative Realty LLC||75-100%|
|HomeRiver Group Orlando||50%|
|Central Florida Real Estate Management||50-100%|
|Bull Property Management||60-100%|
|Blue Home Property Management||50-100%|
|The Realty Medics||35-100%|
Next, your property manager will charge a monthly fee to cover the ongoing management of your rental. When comparing options, don’t just opt for the cheapest rate! These fees vary depending on the scope of services provided, so it’s important to consider what services you’re looking for to evaluate whether the fee is worth it.
Depending on your chosen company, the monthly management fee may be a flat rate or a percentage of your monthly rent.
In Orlando, flat fees generally run between $100 and $200, whereas percentage fees range from 8% to 10%.
|Specialized Property Management||$99-189|
|Re/Max 200 Realty||7-10%|
|Evernest||8%, or $109-199|
|Legends Realty||8% or $100, whichever is greater|
|Key Real Estate and Property Management||8%|
|Innovative Realty LLC||10%|
|HomeRiver Group Orlando||8%|
|Central Florida Real Estate Management||10%|
|Bull Property Management||10-12%|
|Blue Home Property Management||9.5%|
|The Realty Medics||8-10%|
Some property management companies will coordinate maintenance, specific repairs, and general property upkeep for you. While it might seem like it would be cheaper to handle this on your own, working with a property manager to handle these situations can be more cost-effective because they often have relationships with local contractors that allow them to negotiate a lower price than you would be able to get on your own.
Most property managers will require you to keep a minimum reserve repair fund on hand to cover repairs outside of general upkeep. Your property management agreement will cover the minimum amount you must keep in your reserve repair fund and the process for authorizing the use of these funds.
When your tenant wishes to renew their lease, your property manager may charge a separate lease renewal fee to cover the costs of negotiating and completing lease renewal documents. Lease renewal fees are sometimes waived, depending on the company you work with or the membership tier you’re a part of.
In Orlando, lease renewal fees generally range from $200-300 or 25% of the monthly rent.
|Specialized Property Management||$250-475|
|Re/Max 200 Realty||Information not available|
|Legends Realty||25% or $200|
|Key Real Estate and Property Management||$250|
|Innovative Realty LLC||$350|
|HomeRiver Group Orlando||25%|
|Central Florida Real Estate Management||$250|
|Bull Property Management||Information not available|
|Blue Home Property Management||$250|
|The Realty Medics||Information not available|
|Darwin Homes||Information not available|
If your unit is vacant, your property manager may charge you a monthly fee. This vacant unit fee covers the cost of inspecting your property regularly while it is vacant. This is because when a property is unoccupied, it is required by law to be inspected regularly to meet the terms of insurance policies and ensure the building maintains its integrity and safety.
It’s not common, but all landlords should be prepared for the possibility that they may need to evict a tenant. Most property managers will handle tenant evictions on your behalf. Some charge a fee, while others offer an eviction guarantee in their monthly management price.
At Evernest, for example, eviction protection is included in our Platinum pricing plan. Still, landlords can also purchase an eviction protection plan as an add-on for an annual rate of $200.
|Specialized Property Management||Included in professional and premium membership tiers, $129-189/month|
|Re/Max 200 Realty||Covered up to $700|
|Evernest||Included in the Platinum plan, or $200 as an add-on|
|Key Real Estate and Property Management||Included|
|Innovative Realty LLC||Information not available|
|HomeRiver Group Orlando||$10/month|
|Central Florida Real Estate Management||Information not available|
|Bull Property Management||Included up to $950 in Premium Service (12% monthly rent)|
|Blue Home Property Management||Included|
|The Realty Medics||$57/month|
|Darwin Homes||Information not available|
|Verandah Properties||Included up to $2250 in the platinum plan, or $14/month as an add-on|
|Mynd||Included up to $5000|
Further reading: How To Navigate The Eviction Process As A Landlord
Routine inspections verify that your tenant keeps your rental well-maintained and allow you to identify problems before they grow into costly issues. Some property managers will include all inspections in their monthly management fee.
It is important to note that if you leave your contract with your property manager early, some companies may charge you an early termination fee. These fees can vary greatly, so take note of this in your contract.
At Evernest, we think you should be able to terminate your contract with your property manager if you are dissatisfied. It’s our 100% Happiness Guarantee.
Many of the above fees were included as ranges because numerous factors can influence the final cost of property management fees. Here are some things to keep in mind:
Investing in the Orlando market is an exciting opportunity and a great way to grow your investment portfolio. If you want to ensure you achieve the outcomes you want for your business, hiring the right property manager is key.
Evernest is dedicated to providing stress-free property management while also helping to earn a consistent return on investment for our property owners. We’ve got your back if you want a property manager you can trust.
Let us prove it to you! If we can’t find a qualified tenant for your Orlando rental property in 21 days or less, your first two months of management are on us.
There’s no time like the present to start making your rental business dreams a reality: send us an inquiry to get started today. >>
All claims resulting from an industry-wide audit done by our in-house team. If we missed something or have provided incorrect information, please let us know at [email protected].
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