Every Orlando property management company is different in the way they provide managemetn services and also in the way they collect fees.
When you’re looking for Orlando property management, make sure you’re prepared to talk to prospective property managers about the fees they charge and the way those fees are structured. More important than the price tag is the value you’re receiving. Make sure you know what sorts of services you can expect in exchange for those property management fees.
Understanding Orlando Leasing Fees
While all property management companies in Orlando and Central Florida are different, there are a couple of management costs you can count on with just about any property manager to charge. The first such fee is a Leasing Fee or a Tenant Placement Fee (also known as finding you a tenant to rent your Orlando rental home.)
This is a one-time fee that you pay to cover the costs of finding and placing a quality tenant. Usually, you can expect this to cost to be 50-75 percent of one month’s rent or even a full month’s rent. Or, it could be one flat fee like $500 or $750. Find out what this leasing fee includes. Some companies will charge an advertising fee on top of the leasing fee. You’ll want to know exactly what you’re getting for your money.
Orlando Leasing Fee Calculator:
In Orlando, Florida, the current average rental rate is $1,733/mth
If your Orlando property management company charges 50% for finding and placing a tenant, the leasing fee is:
$1,733/mth Rental Price x 50% Leasing Fee = Total Leasing Fee $866.50
Monthly Management Fees
While the leasing fee is charged once, the management fee is charged every month. This is what a landlord pays for the ongoing and professional Orlando property management of a rental home. The industry standard is pretty similar to what Orlando property managers charge. You can expect to pay between 8 to 10 percent of your monthly rental income in management fees.
Some management companies may charge a flat fee instead. Each company is structured a little differently. We suggest that before you hire a property management company, you do your due diligence and ask the right questions regarding fees. You might be surprised to find hidden or additional fees, and no one likes surprises.
Central Florida Property Management Fee Calculator:
If your property manager rents your home for $1,733/mth
If your property management company in Orlando charges 8% for monthly management, the monthly fee is:
$1,733/mth Monthly Rental Rate x 8% Monthly Management = Total Monthly Management Fee: $138.64
Additional Property Management Fees
In addition to the leasing and management fees, you might come across companies that charge Fees such as:
Marketing or account set-up fees
Maintenance up-charge fees
Home warranty fees per call
Lease renewal fees
These fees aren’t necessarily wrong if they fit into the overall cost of property management. Just make sure your property manager is up front about them so you know what to expect. A monthly property management fee that seems uncommonly low might be supplemented by additional hidden fees on everything that a higher management fee would normally include in their Orlando property management fees.
What Fees Do I Pay If I Already Have A Tenant In My Rental Home?
If you already have a tenant in place for your Orlando rental property, this can reduce your property management fees. Often, your property manager will start collecting rent, and the fee would be just the monthly management fees.
Although, some property management companies in Orlando and Central Florida will have property management startup fees:
- $250-$500 Startup Fee
- $150-$350 Account Setup
- $500 One-Time Fee
These property management startup fees are in place to allow your property manager to get all the documents input, owner and tenant portal setup, new management postings, etc.
Common Factors That Affect Orlando Property Management Fees
Many property management companies in Orlando and Central Florida will navigate and price their fees based on other property-specific features. If you have one single-family rental property, typically, the management fees will be higher, but if you have three or more rental units or a multifamily property or apartment complex, they will offer special Investor Management Fees (which will oftentimes be much lower.)
Additional factors that affect property management fees in Orlando are:
1. Rental Property Type: is your rental home in Orlando a residential property? Or, if the rental unit is a short-term vacation rental property. If your rental is an Orlando multifamily property, then this will affect their Orlando multifamily property management fees.
2. Rental Property Condition: If you have an ancient rental property in Orlando or Central Florida, typically, the first thing a property manager will think is, “This property will require a lot of maintenance.” But if your rental home is a new construction property that is turnkey, then you may be able to negotiate a lower property management fee.
3. Rental Property Location: Make sure when you’re looking to hire a property management company and look at how far their office is from your rental property. Suppose your rental property’s located in Lake Nona, Florida, and your property management company’s office is located in Winter Garden, Florida. In that case, they may charge a higher property management fee due to the distance and location of your rental property.
4. Full-service Property Management vs. One-off Services: Many property managers in Orlando will offer different property management packages. Many rental property management companies will provide one-off management services such as:
- Tenant Placement Only
- Rental Property Marketing (photos and video tours)
- Rent Collection Only
- Scheduling Maintenance
- Rental Property Inspections
- Lease Signing and Lease Renewals
If you don’t need a full-service property management company and are comfortable self-managing your rental property, then the one-off property management services may benefit you.
Important Property Management Fee! – Contract Termination Fee
If you are signing a property management contract aka property management agreement make sure you are aware if the management company has a contract cancellation or contract termination fee. In Orlando, you will find many property management companies that will have this fee in place if you ever want to cancel your management agreement.
Why Should You Avoid Property Management Companies With Cancellation Fees?
We always recommend avoiding property management companies that hold their rental property owners hostage. Down the line, if you feel like switching property management companies, it will cost you. If you are not pleased with a property management company’s service, you should have the option to cancel without getting charged, right?
At The Listing Real Estate Management, we do not have cancellation fees. We are confident in our Orlando property management service and would never want to hold our property owners hostage. We care for our rental property owners and their rental properties and feel this fee should not exist.
Property Management Summary
Make sure you’re measuring services as well as costs. The amount of expertise, service, and knowledge a property manager brings to the table also counts for something. It’s hard to measure peace of mind, and if you have a great property management company thats working hard to keep your costs down and your profits up, the management fees are often well worth it. Remember, you can also deduct your property management fees on your taxes, making professional property management a benefit in several different ways.