Blog Post

Understanding the Costs of Property Management

Cassie McClenaghan • August 16, 2024

Understanding the Costs of Property Management

Breaking down your relevant costs, including monthly fees and more.

When it comes to managing your rental property, understanding the associated costs is crucial. At Patriot Property Management, we believe in transparency and simplicity, ensuring our clients know exactly what they're paying for. That’s why today, we’ll break down the essential costs of property management and explain why choosing the right management company is key to maximizing your investment. Here’s what you need to know:

1. Unfurnished rentals. We keep things straightforward for long-term, unfurnished rentals. Here are the two primary fees that we charge:

Percentage-based monthly management fee. This fee is a percentage of the monthly rent collected. It covers the day-to-day management of your property, including tenant communication, maintenance coordination, and rent collection.
Leasing fee. This one-time fee is charged whenever we lease your property to a new tenant. It covers the costs of marketing your property, screening tenants, and finalizing the lease agreement. With Patriot, there are no surprise fees. You know exactly what you're paying each month, allowing you to budget and plan with confidence.

2. Furnished rentals. If you own a furnished rental property, the fee structure is slightly different. Furnished rentals typically require more intensive management, leading to slightly higher fees. We tailor our services to meet the specific needs of furnished properties, ensuring they are well-maintained and attract high-quality tenants. For more detailed information about these fees, we recommend reaching out to us directly.

"We ensure transparency in everything we do—that’s what sets us apart."

3. Percentage-based vs. flat fee property management. When considering property management options, you may come across companies that offer flat fee services. While this may seem like a straightforward option, it's important to dig deeper. Flat fee companies often have a "menu" of additional fees that can add up over time. These fees might include charges for routine inspections, maintenance coordination, or even tenant communication.

In contrast, percentage-based fees are typically all-inclusive, meaning you won't be surprised by unexpected charges. When comparing the two models, make sure to ask for a full list of potential flat fees. Over the course of a year, you might find that a flat fee arrangement ends up costing you more than a percentage-based model.

Every property, situation, and property management company is different. We pride ourselves on offering transparent, fair pricing and exceptional service. Our goal is to help you get your property on the market quickly, attract quality tenants, and maximize your rental income.

If you're considering property management services or have questions about what it would cost to manage your property, we encourage you to reach out to us. We're happy to discuss your specific needs and provide a clear, customized pricing structure that works for you. Call or email us today to learn more about how we can help you achieve your rental property goals. Just dial 602-581-3586 or email cassie@patpm.com. We look forward to helping you!

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