What are the Management Fees for a Professional Nashville Property Manager?

March 10, 2023 TCSMgmt

What are the Management Fees for a Professional Nashville Property Manager?

WHAT ARE THE MANAGEMENT FEES FOR A PROFESSIONAL NASHVILLE PROPERTY MANAGER? - Article Banner

You shouldn’t be playing guessing games when you’re looking at the property management fees charged by a professional Nashville property manager.

At TCS Management, we like to keep our fee schedule simple and transparent. Our job is to provide high quality leasing, management, and maintenance services, and we’re happy to do that at competitive rates.

Every property management company will structure their fees a bit differently. What you pay will depend on the company you choose, the property you own, and the services you require. If you own a building, you’ll likely pay less per-unit for management than you would for a portfolio of single-family homes.

Let’s take a look at some of the typical fees you’ll encounter when you’re hiring a Nashville property manager.

Nashville Leasing Fees

Nearly every property management company will charge a leasing fee. This is necessary to cover the costs of marketing and tenant placement. Sometimes, you’ll find a company that charges a separate marketing or advertising fee in addition to the leasing fee. You might get charged separately for showings or for tenant screening. Investigate all of this before signing a management contract.

For most property managers, however, your one-time leasing fee will cover:

  • Recommendations on improvements and updates that might lead to higher rents and faster leasing. This is the process of getting a property rent-ready.
  • A local and timely rental analysis, which will be used to establish a profitable and competitive rental price for your property. Property managers have precise data that will establish the right rent.
  • Professional photographs. Expect high-quality photos from your property manager, which will be included in a rental listing that is syndicated to a wide network of rental sites. You should also find your listing on your property manager’s website and potentially the MLS.
  • Communication. Potential tenants will call and message with questions about your property. Your manager will be tasked with fielding those calls, answering those questions, and making the property available when it’s convenient for showings.
  • Showings. Whether a leasing agent shows the property in person or puts together a system where self-showings can be facilitated, your leasing fee will cover the effort that’s needed to manage this process.
  • Applications and tenant screening. This includes background checks, credit checks, eviction checks, and a look at income, employment, and rental history.
  • Lease execution and negotiation. Your tenant, once approved, will sign the lease agreement. Your property manager will explain it, collect a security deposit, and prepare the property and the tenant for the move-in date.

You can expect a leasing fee that is a flat fee paid one time or a percentage of the first month’s rent. Some companies will offer lease-only services, where you pay to have a tenant screened and placed, and then take over the management yourself. If you’re not investing in full-service management, you can expect your leasing fee to be a bit higher.

Nashville Property Management Fees

While the leasing fee is paid once, your management fees are recurring. Most property managers will deduct it from the rental amount before that rent is deposited in your own account. This makes it easy, and you’ll see that deduction in your accounting reports and statements.

Similar to the leasing fee, the management fee might be a flat rate or it might be a percentage of the rent that’s earned. For example, you could find yourself paying $300 a month, or you could find yourself paying 10 percent of the monthly rent.

Lower management fees may include only specific services. Generally, an all-inclusive management fee will provide for:

  • Inspections of the property before, after, and during the tenancy.
  • Maintenance.
  • Rent collection and lease enforcement.
  • Tenant relationships and communication.
  • Accounting and bookkeeping.
  • Communication with HOAs, community associations, vendors, and other stakeholders.
  • Lease renewals.

There’s also a lot of value that’s hard to list. For example, your management fee will cover the time it takes for property managers to stay up to date on fair housing and rental laws. You know your property is compliant because of their expertise. You’re also getting general investment advice and support. There will be suggestions and encouragement. If you’re looking for new investment opportunities, the property manager you’re working with can point you in the right direction.

The scope of what your property manager provides will often be found in the management contract you sign. Make sure you review it carefully to avoid any surprise fees or unexpected charges.

Extra Fees You May Not Expect

When your leasing and management fees cover everything, there won’t be other charges to worry about. However, some companies will add onto their general fees when specific services are needed.

There may be an administrative or set-up fee. You might find there’s also a technology fee, which covers the software systems, portals, and platforms that a management company uses on your behalf. Lease renewal fees will also typically be charged, unless a tenant moves out, in which case you’ll face another leasing fee when a new tenant is sought after.

Some management companies will charge maintenance fees as well. This could show up as a surcharge on an existing invoice that comes from a plumber or landscaper or painter. Or, you may be charged a percentage of what the invoice costs. For example, if a plumbing cost is $800, your property manager may charge 10 percent of that. So, you’ll end up paying $880, and $80 of that bill will go to your property manager. You might also have to pay for eviction costs if you find your property manager needs to evict a tenant.

Communication and transparency is especially important when we’re talking about property management in Nashville. Find out how much you’re paying and why.

We’d be happy to tell you more about our own fee structure.

, , ,