Let’s say you own condo properties, but you have decided to let a property management company represent you. This decision shouldn’t be made lightly, and while many owners choose to manage the properties themselves, a management company lowers the stress and secures your income for a dedicated length of time. The tradeoff of eliminating the stress, however, means you receive a lower income as a result of the fees.
What Property Management Does
A condo management company collects the fees for the services offered, and they will find dependable tenants. Basically, they handle all the dirty work from the late-night phone calls to hunting down rental payments and maintenance management. What are the fees you should be aware of?
The Leasing Fee
The owners will have to pay a leasing fee, which comes from the advertising and showing of the property. This also comes from reviewing and screening the tenants and preparing the property. Normally, the leasing fees will cost around 75 to 100 percent of the first month’s rent.
Monthly Management Fees
Collected for the services that have been associated with processing rental payments, this usually ranges anywhere from seven percent to 10 percent. As an owner, you should check for condo management companies that have a policy based on rent due or collected rent.
The Other Fees
You have a bunch of other fees that include:
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- Vacancy fee
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- On-boarding fee
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- Late fee
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- Maintenance fee
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- Eviction fee
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- Lease renewal fee
The Cost of Property Management in Calgary
Calgary condo management fees vary by company, so it’s essential to understand their fee structure and what services are included. Typically, fees average around 10% of the monthly rent, but discounts may be available for managing multiple units or entire buildings.
Some companies may charge extra for one-time services outside of standard duties, but these fees are often justified by the added convenience and value they provide. Understanding these details upfront helps ensure you get the best service for your investment.
