Typically, property management fees in Denver are used for rental advertising, tenant screening, rent collection, maintenance, and repairs. But the onus is on the owners to know the various fees and understand the services they provide for those fees. By doing this, you can find a property management company that best fits your budget.
Average costs for property management services
The average cost for property management services in Denver is around 8-10% of the rent. However, costs can vary depending on the services provided and the size and type of property. It is best to get quotes from multiple property management companies to compare pricing and services.
The reputation and experience of the property management company can also affect the cost of their services. A company with a good reputation and more experience may charge more than a new company. On the other hand, a property with a higher occupancy rate may result in lower management fees.
One-time set-up fee
Many property management companies charge a one-time set-up fee, which is usually a flat rate or a percentage of the first month’s rent. The amount of this fee can vary depending on the company and the services, but it typically ranges from $100 to $500.
The type and size of the property are also determinants of this fee. Every time a new property is added to the portfolio of Evernest property management in Denver, Fort Collins, Boulder or any other major area in Colorado, this fee is collected to cover the cost of preparing the property for rental. This fee is used to cover advertising, inspections, and legal paperwork. It is in addition to the ongoing management fee and any other charges that may apply.
Management fee
The management fee is a percentage of the rent in a month that a property management company charges for its services. The industry standard is typically 8-10% of the rent, but it can vary depending on the company. This fee covers rent collection, maintenance, repair coordination, financial reporting, and tenant screening.
Some companies may charge a lower fee for larger properties or for properties that are expected to have higher occupancy rates. Understand that a lower management fee may not necessarily be the best option if it comes with fewer services. Therefore, evaluate the value of the service offered and compare it to your needs.
Additional property management fees
Several additional property management fees may be charged in addition to the above fees. It is always advisable to research and compare fees for different property management companies. Consult directly with them to get an accurate quote.
Lease renewal fee
A lease renewal fee is a charge that some property management companies may apply when a tenant renews their lease on a rental property. This fee can range from a few hundred dollars to a percentage of the rent, depending on the company. This fee is in addition to the management fee and any other charges that may apply.
The fee is usually used to cover the costs associated with renewing the lease, drafting new lease agreements, and updating tenant information. Some property management companies may waive the lease renewal fee if the property is in good condition. Understand the fee structure before signing a property management agreement.
Maintenance fees
Maintenance fees are regular charges incurred by the owners of certain types of property to cover the costs of maintaining common areas and amenities. Such fees are typical of condominiums or co-ops. The fees can vary widely depending on the type of property and its location, as well as the services and amenities included.
The fees for properties in Denver range from $200 to $500 for condos, townhouses, and single-family homes and $300 to $800 for co-op and apartments per month. Expenses that maintenance fees may cover include landscaping, snow removal, security, and building repairs and maintenance.
Leasing fee
A leasing fee, also known as a finder’s fee, is a charge that is paid to a real estate agent, broker, or property management company to find a tenant to rent a property. This fee is typically paid by the landlord or property owner and is usually a percentage of the first month’s rent or a flat fee.
The percentage fee can range from 6% to 12% of the annual rent. The flat fee can range from $500 to $1000 depending on the location, property size, and type. It would also depend on the services provided by the agent. The leasing fee is separate from the security deposit, rent, and other charges associated with renting a property.
Conclusion
Find out and compare the fees for different property management companies in Denver before deciding. This can help you get a sense of the typical costs for property management services in the area. When consulting with property management companies, be sure to ask about all of the fees that may be charged.
