How much do property managers charge in Charlotte, North Carolina? This is generally one of the first questions we get from potential clients. We are more than happy to answer it, but property management fees really depend on what you want the property manager to do for you.
At Alarca Realty, we have three different tiers of service and pricing. Every property management arrangement is one of delegation. You need to figure out what exactly you want the property manager to do. If you want them to manage everything from soup to nuts, you’ll pay more than what you will pay if you retain some of the responsibilities. You might want inspections every quarter, inspections once a year, or no inspections at all. This factors into pricing. I encourage potential clients to think of this like a hotel room. I was looking in the Charlotte area for a room on a particular night, and the prices ranged from $46 a night for the Econolodge to $789 for the Ritz Carlton. Both offer hotel rooms for the same night, but you’ll expect more from the Ritz than the Econolodge. And, you’ll probably get a better night’s sleep.
How Much is Property Management in Charlotte, NC?
Property managers are caring for one of your largest assets. The situation puts you at risk for lawsuits, fair housing violations, code violations, and other things that can influence the amount and quality of sleep you get every night. So, look at the services a manager can provide. Unlike hotel rooms, property management services fall into a pretty narrow band. Prices in our area are generally between 8 and 12 percent of one month’s rent for the standard monthly management fee. Most firms in our area charge a leasing fee of 50 to 100 percent of the first month’s rent. This covers the cost of finding a quality tenant, marketing your home, and placing that tenant.
Property Management Charlotte, NC
Within that band, look at any additional fees that you may have to pay. Is there an extra charge for inspections, and are you getting a full report with videos and pictures or just a checklist? Ask about whether you will have to pay utilities when a home is vacant, or if there’s a connection fee. Know whether the maintenance costs are marked up, if there are lease renewal fees, vacant property management fees, or eviction fees. Sometimes you’ll be charged for move in and move out videos. You might find there’s a separate advertising fee in addition to the leasing fee. There are account set up and termination fees. All kinds of costs can be extra, so determine what you’re really getting. In our management agreement, we include a list of fees that are not customary, but if you need one of those services, we will provide it for you and charge the appropriate fee. It’s an option for our owners.
Saving Money in the Long Term
Does it ever make sense to pay more? If all the fees are the same but it’s 7 percent of your rent versus 8 percent of the rent, it might seem natural to go with the lower price. But, sometimes the more expensive property manager will save you money in other areas. For example, if one property manager uses a vendor who costs $150 per visit, and another has a vendor who charges $65 to show up, you’ll save money every time there’s a repair. Tenant retention is also paramount. If one manager has a tenant staying three or four years versus tenant turnover every year, the frequent turnovers will cost you. The biggest cost for a property investor is vacancy and turnover. Those expenses are much higher than management fees.
Make an educated decision that includes more than price. If you have questions about Charlotte property management, please contact us at Alarca Realty.