If you are a first-time landlord or homeowner wanting to rent out your property, you may be wanting a property management company to lease and manage your property. You have done your research and narrowed in on your best choice for Orlando property management companies. But even after doing all your research, you may still not know how you pay your property manager. Today, we will be going over the most common ways property managers get paid, who pays them, and how managers may operate differently with their payment structure.
How to pay an Orlando Property Manager?
As a new landlord, you may not fully understand the rental process; after all, anything new or foreign takes time to understand. When your tenant pays rent, your property managers in Orlando will collect the rent. Your property manager will direct rental funds into a trust account holding your rental income in Florida. Typically, rental funds take a few days to fully manifest. At which your funds are ready to be paid to you, the rental property owner. There are typically two methods your manager will get paid for managing your rental property every month.
Property Management in Orlando Payment Structures
1. Property Management Percentage of Rent
The most common way Orlando property management companies get paid is by rent collection, funded by your tenant. Your property management agreement should state what percentage your manager will keep for managing your rental property. If you are new to real estate investing or being a landlord in general, find out the standard Orlando Property Management Fees.
In Orlando, your property managers will keep the agreed-upon amount (typically 10%) of the monthly rent amount collected. To break it down, if your property manager rents your home at $1,600.00 per month, your property management company will keep 10% of that amount, which is $160.00 per month. Percent of rent collected is the most common type of property management payment.
2. Property Management Credit Card Method
A few Orlando rental property management companies will take down your credit or debit card and charge you monthly for the monthly management. At the surface, you may think, “Wow, how convenient.” But, in all reality, there is no skin in the game for your property manager. You will get charged if your tenant doesn’t pay or is late on rent.
What if your home is sitting vacant, will your credit card get charged? If hiring a property manager was like an Amazon account or a Netflix subscription, it makes sense, but that is not the case for managing a real estate asset.
Is There a Property Management Startup Fee?
Many property management companies in Orlando will not ask you for a startup fee. Once your property manager finds a qualified tenant, the tenant will pay your property manager for the leasing fee every month. Some managers will require a startup fee; this fee is:
- Rental Property Onboarding
- Startup Marketing Fee
- Rent Ready Repairs
- Online Syndication Fee
Again, property managers require this fee upfront when the property management agreement is signed, and this is one fee that can be missed by many homeowners.
Why Pay an Orlando Property Manager?
If you’d like to save a buck, you may think that managing your property is a good idea. On the surface, it seems like an easy task. As a DIY landlord, ask yourself, How Valuable is Your Time? Is all the headache worth it to save a few bucks? Professional property managers in Orlando are excellent multitaskers and handle every aspect of managing your rental property.
How can Orlando Property Management Companies help me?
Rental property management companies can assist in many ways when it comes to renting your home. Professional property managers can find you a high-quality tenant if you have a vacant rental property. Otherwise, if your rental property is already tenant-occupied, your property manager can assist in managing your property daily.
We genuinely believe hiring an Orlando property management company is worth the money. No matter how you pay your property manager, they will have your back and look out for your best interest.
Orlando Property Management Conclusion
As one of the highest and best-rated Orlando property management companies, we have seen our homeowners and real estate investors benefit from the percentage of rents collected. This motivates your property manager to increase your rental income; if you earn more, they make more. Paying your property manager is well worth the cost.
If you have any questions about how you will be paying your property manager, please contact The Listing Real Estate Management. We’d enjoy hearing from you and discussing all things about property management in Orlando & Central Florida.