Signing up with a startup property management company in Tampa might give you some savings due to lower fees. However, that doesn’t secure quality service and outstanding management. Remember that at the end of the day, the occupancy and rental rate will still determine your earnings, and you cannot do that with a company that is still starting to build a network. Because the service also includes operations and maintenance of your property, it is not wise to gamble with a company in a trial-and-error period.
Choose a property management Tampa company that has, at least, three years of operation and a sufficient client portfolio.
A property management Tampa company with wide area coverage also gives a longer list of possible tenants, including people who want to move from surrounding towns. It is better if you can pick a company with existing coverage in Hillsborough County, Manatee County, Pinellas County and Pasco County as well.
3. Management Rates
A property owner wants to have his/her investment property managed for one thing – to earn from it. If a large part of that sum will just go straight to the realty company, you might need some time to think again.
There are three basic charges applied by many Tampa Florida property management companies which you need to understand.
First is the leasing fee. Many national and multimillion realty companies commonly charge a full 100% of the monthly rental fee on top of other fees. That is more than 8% of the total earnings you should receive for the whole year.
Second is the management fee. This pertains to the overall management cost the company gains for taking care of your property. The typical charge is anywhere from 15% to 20% of the monthly rental rate for all months that they will include your property in their management.
If your monthly rental fee is $1500, the management fee for the whole year is a whopping $2700 to $3600.
Last is the junk fee. This can include anything from whatever services the company is doing for your property. It can be an overhead charge, a processing and set-up fee, a marketing fee for all advertising and marketing efforts, and a renewal fee whenever there is a new tenant. These are unnecessary charges that you do not really have to pay should you choose the right company.
The good news is, there are local yet stable and trustworthy property management Tampa FL companies that have lower leasing fee, lower monthly fee and no junk fees at all.