COMMERCIAL/RESIDENTIAL
ASSESSMENT OF PRICING FOR PROPERTY MANAGEMENT
At Triple Diamond Property Management, we assess pricing for residential or commercial family housing projects based on several factors, and the fees are typically paid by the property owner or investor. Here’s how our property management pricing is determined and how the fees are structured:
*Explore detailed information by clicking the arrows.*
The type of property being managed is a primary factor in pricing. Residential and commercial properties have different management needs and complexities, which can affect the cost.
The size and complexity of the property or project play a significant role. Larger properties with more units or more extensive common areas may require more extensive management services and, consequently, higher fees.
Triple Diamond Property Management offers a range of services, and the pricing depends on which services the property owner or investor requires. Services can include tenant screening, rent collection, maintenance, and financial reporting.
The location of the property can influence pricing. Properties in high-cost-of-living areas or those subject to specific regulations may incur higher management costs.
Property management fees are often influenced by local market rates and competition. Companies may base their pricing on what is typical for similar properties in the area.
The current condition of the property also affects pricing. Properties in good condition may require less maintenance and repair work, potentially reducing costs.
If the property requires additional services or expertise beyond standard property management, such as marketing for leasing or major renovation oversight, these can lead to higher fees.
FEE STRUCTURE OF PROPERTY MANAGEMENT
Property management fees can be structured in several ways:
A common fee structure is a percentage of the rent collected. Triple Diamond Property Management typically charges a percentage (e.g., 8% to 12%) of the monthly rental income as a fee. This structure aligns the fees with the property's performance.
Additionally, Triple Diamond Property Management may offer a fixed monthly or annual fee, regardless of rental income. This can provide cost predictability for property owners.
In some cases, a hybrid fee structure may be used. This could involve a lower percentage of rent plus additional flat fees for specific services or tasks.
For securing new tenants, Triple Diamond Property Management may charge a one-time leasing fee, typically equivalent to a portion of the first month's rent.
Any maintenance or repair work may incur additional fees, which can be based on the scope of the work or a percentage of the cost.
PAYMENT OF FEES
The fees for property management services are typically paid by the property owner or investor. Payments can be structured in the following ways:
Management fees are deducted from the rental income collected by the property management company each month.
Property owners may pay management fees directly to the management company, separate from rental income.
Leasing fees for finding and securing new tenants are typically paid by the property owner when a new lease is signed.
It’s essential for property owners or investors to thoroughly review the terms and fee structures outlined in their property management contracts. The contract should specify all services covered by the fees and any additional charges that may apply. By understanding the pricing and fee structure, property owners can make informed decisions and ensure they are receiving value for the services provided by the property management company. Triple Diamond Property Management offers full transparency in their management agreements relating to our scope of work and fees due and payable. Contact us for a free consultation.