Most people look at the fees when comparing property management companies. However, property management fees vary widely and choosing the company with the lowest fee is not always the best for your assets. A lower rate may mean that the company acknowledges they can provide a premium service or wants to undercut the competition. However, a higher rate does not always equate to top-tier service. Avoid comparing apples and oranges and make sure that you’re comparing fees for the same set of services. At MYND, we offer a flat monthly fee and below we explain what you’re paying for.
Property Management Setup Fee
The setup fee is a flat fee for signing up for the service. It ranges from $0 to $300. Usually, companies that don’t have a setup fee are new in the industry and aiming to undercut their more experienced competitors or have a cancellation policy in place, so be sure to look into the fine print. When talking about setting up a new account, ask if it’s per unit or per property.
Monthly Property Management Fee
Traditional property management companies charge by a percentage of the monthly rent, which ranges from 4% to 12%. At MYND, we have a flat monthly fee so you get more out of your investment.
Advertising or Marketing Fee
Property managers rarely charge for advertising your home for rent, but some might ask you to pay for marketing fees especially when your property is hard to lease. At MYND, we know several effective advertising strategies and use modern tools to reach potential tenants yet adding your home to listings stays free of charge.
Tenant Placement Fee
The tenant placement fee is what you pay property management companies for successfully finding a tenant. Normally, it is equal to a month’s rent. At MYND, we take only 50% of the month’s rent because we focus on finding you good, long-term tenants and keeping them satisfied by keeping the property well-maintained. We understand that a high turnover hurts your investment, so we prefer to find tenants that aim to stay for as long as possible.
Lease Renewal Fee
Lease renewal involves paperwork. Unlike some property managers, we have a lease renewal fee because we are confident on our ability to find long-term tenants and our efficiency that motivates them to rent your home again when the lease contract expires. Most companies that don’t charge for lease renewal simply pad the tenant placement fee to make up for it.
Eviction Coordination Fee
Eviction is a lot of work, so most property management companies charge for this. The service usually includes serving notices and legal work. At MYND, we consider it a part of the entire property management process.
Much like companies in other industries, some property management contractors want a guarantee that you’ll be their client for a certain period. MYND is not your traditional property management company in this sense. We give you the liberty to end the service whenever you want.
Other Fees Charged By Property Management Companies
When comparing property management companies, you might come across vacancy fee, reserve fund, unpaid invoice fee, and bill payment fee. Most property owners oppose vacancy fee, which is the amount you pay when no rent is coming in. Reserve fund is allotted for everyday operations. Unpaid invoice fee is for failing to pay your balance, such as the cost of small repairs that must be done as soon as possible, while bill payment fee is for additional and optional services such as when you need someone to pay your mortgage and utility bills.
MYND is different from traditional percentage-based property management companies. Instead of charging you for each activity, we created a package that covers setup, monthly management, inspection, listing, tenant placement, lease renewal, and eviction. Contact us for any questions you may have about our flat property management fee.