When looking for a company to manage your properties, some of the factors you will consider are their pricing model and the rates they charge for their services. This information will help you to determine whether the company will meet your needs. However, some real estate investors can find this process confusing, partly because certain property management companies in Baltimore, MD, are less affordable than they claim to be.
Let's take a look at why that is.
How Most Companies Charge for Their Management Services
Most property management companies charge a base monthly fee, which is usually a percentage of the monthly rent for the property. However, some of these companies are not transparent with their pricing. If your contract says that you will pay a percentage of rent collected as fees, the total of the fees collected may change from time to time. When your property is fully occupied, the actual amount will go up. Similarly, property management companies will charge a higher percentage if you have fewer rental units or a smaller property. Other factors that will influence the size of management fees are location, property type, and whether the company hires subcontractors.
When you hire a property management company, you expect them to handle only the operations and administration of your properties. However, some companies add additional fees for a variety of services, such as listing your property on top websites and other services in addition to the basic ones. As such, you will incur extra expenses in the event that you request more services than what your initial fee covers. Before signing your contract, you should read it carefully and go through the company's fee structure to enable you to make smart decisions.
Some Hidden Fees You Should Know About
The sneaky fees charged by some property management companies in Baltimore, MD, will see you paying more for the services. As a property owner, you should be aware of these hidden fees and how they can impact your investment.
A property manager can charge you leasing fees to cover the services they offer to help you get new renters. They may also have a late fee for when they handle a late payment on your behalf. Another hidden cost are maintenance fees that are usually charged as a percentage of the cost of repairs to your property. Depending on the company you work with, you may come across some fees related to property inspections, fielding maintenance calls, evictions, and rent-ready preparations.
These hidden fees can present unexpected surprises that make it tough to calculate your fees for a month or predict and plan for your expenses. Without proper planning, it won't be easy to manage your cash flow, a factor that could significantly affect the financial health of your business.
Considering the problems associated with these fees, you should know the qualities to look for in a property management company. When it comes to pricing, you want a company that is transparent and has simple pricing models. This way, you will know the specific services you will be getting and how much you will be required to pay for them.
Rentwell's One Rate Pricing Model
Our OneRate pricing model is an all-inclusive package designed to make it easy for you to ensure your properties are well-managed. Our rates are competitive to help you keep your costs down and earn more from your investments. The fee arrangement is simple and easy to understand and covers a variety of services to ensure you have peace of mind. These include tenant placement, lease renewal, maintenance markup, court appearance, and two on-site visits every year. In short, you will not encounter any surprises regarding hidden fees when you work with us.
Rentwell is a responsive and reliable property management company committed to taking over the hassles of management for you. We go the extra mile for you and have proper structures in place to ensure you always have eyes on your property. To make sure we provide quality services, we have local people working in your neighborhood. Our local presence puts us in a great position to help foreign investors manage their properties from anywhere. In the end, our mission is to make your property investment journey smooth and enjoyable.
Rentwell is one of the leading property management companies in Baltimore, MD. We strive to keep our prices low and offer you quality services so you can focus on growing your real estate investment portfolio. Sign up for our free One Rate Calculator to see how Rentwell's pricing compares to other property management companies.