What Are Usual Property Management Fees in Grand Rapids?

May 21, 2021 | Owner Education, Property Management Education

When you’re looking for a Grand Rapids property management company, you’re likely going to inquire about fees.

What you’re paying for leasing and management services goes well beyond the dollar amount, however. Don’t be deceived by astonishingly low prices. A management fee that seems too good to be true probably is. It means you’re going to be charged extra for everything beyond rent collection. Or, the management company is not going to have the resources necessary to expertly manage your property.

Management fees should be competitive and they should also provide a lot of value. The cost of property management depends on the home you need managed, the services you require, and the company you choose to work with.

Leasing Fees in Grand Rapids

The first fee most owners will encounter is the leasing fee. Some management companies even provide lease-only services, in which you hire a professional service to find and screen a tenant, but then the day-to-day management is turned back over to you.

In general, professional leasing services in the Grand Rapids market often cost up to the equivalent of one month’s rent. Or, there will be a flat fee.

If you’re hiring the same company to provide ongoing property management, your leasing fee will likely be reduced.

Grand Rapids Property Management Fees

While the leasing fee is a one-time expense, your management fee will be paid monthly. Typically, it is the percentage of your monthly rental income. In Grand Rapids, the average management fee you’ll most likely find is between 8 and 12 percent. You might find a company that charges a flat fee of $100 or $200 per month regardless of what your property earns.

A management fee should cover everything that your property manager does to keep your property occupied, compliant, and profitable. Some of these duties that are covered in the management fee might be:

  • Tenant relationships and conflict resolution.
  • Rent collection from tenants and payment to owners.
  • Lease enforcement.
  • Legal and regulatory compliance.
  • Online accounting statements and financial reports.
  • Responding to emergency and routine maintenance.
  • Managing preventative maintenance and services, such as pest control and landscaping.
  • Managing the collection and return of security deposits.
  • Inspections and inspection reports.
  • Technology that includes online payment systems and owner and tenant portals.

You’re also paying for things that can’t really be included in a list. With your management fee, for example, you get access to your property manager’s knowledge and resources. Understanding the local market will help with accurate property pricing and marketing strategies. A preferred vendor network means you won’t overpay or find yourself waiting for work to be completed.

Look for Extra Grand Rapids Management Fees

Transparency is critical when you’re looking at a property management company’s fee structure. You want to know if the leasing and management fees cover everything that you’re going to need, or if there are additional fees you’ll have to pay throughout the course of the lease. Some extra fees that companies charge might include:

  • Advertising fees
  • Lease renewal fees
  • Technology fees
  • Administrative fees
  • Eviction fees
  • Vacancy fees
  • Account set-up fees

The list goes on for many management companies. We’re not saying that you shouldn’t be charged these things, we’re simply saying that you need to be aware of them if they’re going to fall outside of the general leasing and management fees.

What Are Usual Property Management Fees in Grand Rapids?If you’d like to talk more about our own fee structure and how we deliver outstanding Grand Rapids property management services, please contact us at Short South Realty Group.