Generally, hiring a property management company is an economic decision, but it does come with its share of fees. Property management companies vary widely, but there are some general options to choose from. It’s common to see one or more of the following fee structures:
- Flat Fee: Large buildings with many units will most likely be charged a flat fee. Flat fees are most common when a property requires a good deal of the company’s time, energy, and resources regardless of whether individual units are filled.
- Percentage of Monthly Rent: This is the most common fee structure when you hire a Seattle property manager for regular services. The percentage usually falls between 5-15% and you don’t pay unless the unit is occupied.
- Project-Based Fees: If you’re considering hiring a property manager for specific, one-off projects, it’s normal to be billed per project.
If a property manager tries to get you to sign a contract before you fully understand their monthly fees, run the other way. The best property management companies will always make sure the management fees are clearly disclosed before any contract is agreed upon.