When seeking out prices and fees for property managers things can get a bit cloudy. Property management companies usually don’t display their prices online, so you would have to contact them to get a quote. To make matters even more complex, each property management company has a different pricing structure, making comparing two companies that much more difficult. For example, Company A may charge a high upfront monthly charge of 10% per month but also offer an all-inclusive package, whereas Company B may charge a lower fixed price of 5% per month but will charge you for additional services such as service calls, giving out notices, etc.
Generally speaking, if you were to hire a property manager you should be ready to pay about 5% to 10% of your monthly rental income.
Why don’t Property Management companies advertise prices?
There are several reasons why property managers don’t advertise their prices:
- The company would rather you contact them; this gives them the opportunity to be able to sell themselves to you.
- Prices may differ from property to property. For example a property manager may set a higher price for a property in rough shape compared to a newly built home, usually because it will require more management involvement related to maintenance requests.
- Companies usually give discounted rates for larger portfolios. For example if you own two homes, a condo, and a commercial property, you can expect to pay a lower management fee for each property.
Things to look out for in contracts
It’s important you thoroughly read over the contract line by line and not just go by the word of the property manager. Due to the nature of the work, Property management contracts should be flexible and changed based on your needs. If you don’t agree with something make sure you request a change. In the contract you will be able to identify what services are covered by the management fee and what services would have a separate fee. This will give you a better idea of what to expect and you wont be blindsided by a surprise charge on your invoice. Some property managers give themselves the right to perform maintenance services on your property without contacting you, regardless of the price. When the property manager also profits from maintenance calls there is a strong incentive for them to make sure they are performing as many as possible. One story that comes to mind is when the owner of a six-unit building hired one of Ottawa’s bigger property management companies to manage his property. There wasn’t a clause in the contract stating that the property manager had to seek the owners approval before performing any property maintenance. At the same time the company also happened to have a painting division. One month the owner received his invoice and was hit with a $2,000 painting charge! The charge was related to painting over some graffiti that was about the size of a palm on the outside wall of the building. Needless to say, the owner of the property quickly terminated his contract with that company. The moral of the story is to make sure the contract also protects you from being overcharged and taken advantage of.
Pricing Structure Example
Let’s conclude by giving you an example of the pricing structure for Linkus Property Management
– Flat management fee of $99 per month (residential one-unit property)
– A quote must be requested for commercial, multi-unit properties, and multiple property portfolios
– Management fee is only charged while the unit is occupied, i.e. the owner won’t be charged for a vacant property
– This is an all-inclusive management fee, for more information about the services included visit our Services page
– Any expenses incurred for the maintenance and upkeep of the property will be paid by the owner at no additional mark-up. For example, if the stove needed to be repaired, we would bring in a contractor to repair the stove and forward the invoice to the owner.
– Owners set a limit on the cost of repairs Linkus Property Management can perform without owner approval. Most owners set a maximum of $200, meaning for all repairs under $200 we would perform the repair and it will show up on the owners invoice the following month. For any repairs over $200 we would first seek owner approval before bringing in the contractor.
Are you a landlord in Ottawa? Contact us and find out how you can benefit from a property manager