What does it cost to hire a property manager? It depends on where your property is, as well as factors including the type of property and the level of services you want.
Property managers can also enable you to purchase real estate outside of the city where you currently live, allowing you to do business in areas with strong growth potential. One such area is Kansas City, MO, where home prices were up 12.6% from last year. As of May 2022, the median home price was $278K.
We want to help you understand what to expect in terms of leasing and property management fees in Kansas City. So, in this article, we examine seven 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 lay out a few ways to know for sure:
Most property managers charge a leasing fee to cover the work involved in finding a tenant for the rental property. This could include:
Some landlords may choose to use a property manager only during the leasing period, handling ongoing management themselves once a tenant is placed.
Leasing fees can be fixed, but they are usually calculated as a percentage of the first month’s rent. In the Kansas City area, the average leasing fee is generally 50-100% of the first month’s rent.
Most property managers charge a fee to manage your rental on an ongoing basis. But don’t just choose the cheapest option; consider what services are included in the fee to determine whether the cost is a worthwhile investment in your business.
Depending on the company you work with, the property management fee may be a flat fee or a percentage fee. A flat fee is a set amount of money that you pay monthly, whereas a percentage fee is a percentage of your rent.
In Kansas City, flat fees generally run between $70-180, whereas percentage fees range from 8-13%. These fees are determined by a number of factors, including your rental rate, the type of property you own, and the scope of services provided.
Some property management companies will take care of maintenance and general property upkeep on your behalf. Working with a property manager to handle these situations may be less expensive because they may have relationships with local vendors and contractors that allow them to negotiate a lower price than you would be able to get on your own.
Many property management companies also coordinate the resolution of specific repairs when needed. Most businesses require landlords to keep a minimum reserve repair fund on hand to cover the cost of specific repairs. Your property management agreement will specify the minimum amount you must keep in your reserve repair fund and how you can authorize the use of these funds.
A lease renewal fee covers the costs of negotiating and completing lease renewal documents with existing tenants. This fee can also be a flat fee or a percentage of the monthly rent. Lease renewal fees may be waived by some property managers.
In Kansas City, lease renewal fees generally range from $100-350 or 25% of the monthly rent.
Property management companies may also charge a monthly fee for vacancies. Some property managers may also charge their full monthly management fee even if a tenant is not found.
During vacancies, for example, we charge a monthly management fee for our flat-rate plans at Evernest. That cost includes monthly inspections while the property is vacant, providing you with peace of mind.
While it is uncommon, you may find yourself in a situation where you need to evict a tenant. Your property manager can handle tenant evictions for you; some charge a fee, while others offer an eviction guarantee with a premium membership tier.
For example, in Kansas City, Premiere Property includes eviction management in their full-service management pricing. At Evernest, eviction protection is included in our Platinum pricing plan, but landlords can also purchase an eviction protection plan as an add-on for an annual rate of $200.
Further reading: How To Navigate The Eviction Process As A Landlord
Routine inspections are essential for ensuring that your rental is well-maintained by your tenant and for identifying problems before they become costly repairs. Most property management companies will charge a fee for periodic inspections or move-out inspections.
In Kansas City, inspections are generally included with the leasing fee or monthly property management fee, whereas additional inspections are available for a flat fee.
It is important to note that if you leave your contract with your property manager early, many companies will charge you an early termination fee. These fees can vary greatly, so take note of this in your contract.
At Evernest, we believe you should be able to terminate your contract with your property manager at any time if you are dissatisfied. We call it our 100% Happiness Guarantee.
Many of the fees listed above are ranges because there are numerous factors that can influence the final cost of property management fees. Here are some examples:
The Kansas City market is an exciting place to be a real estate investor, and hiring the right property manager can help you build your business and achieve the real estate outcomes you want.
Ready to get started? Evernest has made it our mission to provide hassle-free property management while also assisting in a consistent return on investment for our property owners. If you’re looking for a property manager, we’ve got your back!
In fact, we can prove it. We guarantee that we will find a qualified tenant for your Kansas City rental property in 21 days or less, or your first two months of management will be free.
Strike while the iron (or, rather, the market!) is hot: send us an inquiry today. >>
All claims are a result of 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]
Lucas is a Content Strategist for Evernest. You can find Lucas drinking coffee or eating tacos when he isn’t doing research or creating content. Lucas is a North Dakotan living in Austin, TX, with his wife and daughter.