Massachusetts property management companies, like us, offer a wide range of services for you to pick and choose from. The fees involved are related to your specific service package. Here’s a brief overview of some common fees that you may encounter:
Most Common Massachusetts Property Management Fees
There is an actual management fee called “management fee” and is it of course the most common one. They can actually include any number of services. The amount can be a flat rate, a percentage of rents, or a combination of both. The amount usually depends on the type of property, number of units, etc.
Another of the most common Massachusetts property management fees is for maintenance. Most properties include predictable maintenance and unpredictable maintenance. How each is handled can vary greatly from one company to another. It’s important to get a good understanding of how Massachusetts management companies handle maintenance and bill for such services.
Tenant Changeover Fees
When one tenant vacates a unit, management companies may charge a fee to procure a new tenant. The leasing fee can be structured in many different ways depending on the services provided, but it is often based on a percentage of the rental income. Some management companies include this service in their management fees rather than as a separate charge.
In addition to leasing fees, management companies might charge for advertising. With the prevalence of Internet Marketing, the cost of procuring tenant leads is much less than it was in the past. However, it still takes time to manage the process.
Evicting a tenant involves a precise legal process of notices, court filings, hearings, etc. It can actually be very time consuming to complete an eviction. Thus, many Massachusetts property management companies will charge an hourly rate rather than a flat fee for handling evictions.
Vacancy fees are charged by some management companies to cover cases where tenants fail to pay rent or units remain vacant. It is important to read the language for this fee carefully and understand under the circumstances under which you would be charged.
Setup fees typically apply to the setup of new accounts for tenants or units. When charged, it is normally a flat fee.
Late Payment Fees
If you are late paying an invoice to your property management company, they may charge a fee of a certain percentage. This is a common practice for many different types of businesses and is meant to discourage late payments.
If your management company is responsible for paying your bills, they will likely charge a fee for this service. Consider it a fee for bookkeeping-type services.
More on Common Massachusetts Property Management Fees
It is important to note that although the items listed above are common Massachusetts property management fees, not all companies charge every type of fee. It truly varies. Some package services together rather than itemizing them separately. As you review fee structures, keep in mind that it should not be your only consideration when selecting a Massachusetts property management company. The extend and quality of services is equally important.