One of the first questions most owners ask any potential property management company is:
How much do your services cost?
This is a good question. When you hire a professional Philadelphia property management company, you’re looking for the resources and expertise that will help you make your investment property as profitable as possible. Management fees are less of an expense and more of an investment, because working with a good property manager will help you earn more with your property.
Every company is different when it comes to what they charge and how they structure their fees. Some companies have a percentage-based model where you pay part of your rental income to your property manager. Others have a flat fee model, where you pay one amount regardless of what your property earns.
Generally, what you pay will depend on the type of property you have, the services you need, and the company you’re working with.
There are a couple of fees that are pretty standard, and we want to share what they typically cover. We also want to tell you about our own fees and why the model we’re currently working with is a great way to deliver high quality services for cost-effective pricing.
Leasing Fees in Philadelphia
Most Philadelphia property management companies charge a leasing fee, which is a one-time payment that covers the cost of finding a tenant for your vacant property. Most leasing fees are a percentage of your first month’s rent or even the equivalent of a full month’s rent. Some companies charge a flat fee. The leasing fee often includes:
- Advertising and marketing, including photos and online ads
- Establishing a rental value for your home based on market data
- Responding to tenant questions and following up with inquiries
- Scheduling showings
- Collecting and managing applications
- Screening prospective tenants
- Collecting security deposits, pet fees, first month’s rent, and other move-in funds
- Conducting a move-in inspection with photos
- Discussing and signing the lease agreement
Philadelphia Property Management Fees
The monthly management fee is usually a percentage of the rent that’s collected. So, if your property earns $1,800 a month in rent, and your management company’s fee is 10 percent, you’ll pay them $180 per month. Usually, this fee will be deducted before your rent is deposited into your bank account.
The management fee usually covers everything that’s involved in the day-to-day running of your investment property. This includes rent collection and lease enforcement. It also includes managing tenant requests and relationships. The management fee covers accounting and maintenance coordination. It should also include the serving of any notices, legal compliance, inspections, and the upkeep of tenant and owner portals and communication.
TCS Property Management Fees
Our fees are competitive for the market. We think that the value we provide is worth the fees we charge. Property management isn’t a product; it’s a service. We’re always suspicious of the companies offering huge discounts or “first month free” deals. At TCS Management, we don’t need to discount anything because our price isn’t inflated, and we consistently provide the services and the experience that you’re looking for every month.
The operational model we’ve come up with is strong and efficient. We don’t need to lure prospective owners into our company with promos and offers. Our clients come to us because we have a reputation for providing exceptional property management.
We typically charge between 7 and 8 percent of the rental income per month for our management fees. Owners who need services that go beyond our general scope are always willing to pay more for them. Nothing is hidden and there are no surprises.
If you’re looking for value, contact us at TCS Management. We are a full-service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, New Jersey, Wilmington, Delaware and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.