How Much Does Property Management Cost in Denver?: An Explanation of Property Management Fees
As the real estate market continues to thrive in the Denver metro, more and more rental homeowners are turning to property management companies for assistance. Hiring a property management company can certainly make your life easier; allowing someone else to do the heavy lifting when it comes to leasing out your property can take a considerable amount of time and work out of your hands. Property management professionals are experts in dealing with tenant concerns, rent collection, vacancies, and maintenance issues.
However, as with all services, there are some costs involved. So what can you expect to pay in Denver in regards to property management fees? In this article, we’ll discuss some of the costs involved with hiring a property management company and some of the fees involved with property management services.
Average Costs for Property Management Services in Denver
When hiring a property management company, there are typically two fees involved at the very beginning. The first is a one time set-up fee, or onboarding fee. Costs for this fee can vary, but they usually run around $300-500 or less.
This fee covers the expenses associated with setting up your account. Your management company may also opt to include the cost of an inspection in this fee, which allows them to evaluate the state of your property and identify any areas of concern or damage.
The other fee that you can expect to pay upfront is a management fee. A management fee includes the cost required to maintain your property on a daily basis to keep things up and running. There are many tasks that your property manager has to attend to, including collecting rent, making repairs, resolving tenant issues, etc. that require their time and attention, and this fee ensures that they are compensated fairly for their work.
A management fee is recurring cost that is usually charged on a monthly basis. Costs for this property management fee in Denver tend to vary based on the market and location of the property. However, most property management companies usually charge around 10-12% of the monthly rent collected.
What Are the Additional Property Management Fees?
In addition to the set-up fee and monthly management fee, there are a few other fees that your property management may charge in order to keep your property occupied and in good condition. Here are some of the common fees involved:
Leasing fee: Sometimes referred to as a vacancy fee, a leasing fee is a fee that is charged if a property becomes vacant and a new tenant needs to be procured. This fee covers the costs associated with advertising and showing the property, tenant screening, move-in inspection costs, and legal costs for creating a new lease.
Lease renewal fee: A lease renewal fee is charged when an existing tenant renews a lease. This fee covers the costs associated for making changes to legal leasing documents, such as changes in the cost of rent or the number of occupants, and also the time it takes to obtain a tenant’s signature.
Maintenance fees: There are always repair costs associated with maintaining any property, no matter the age or size of the unit. Maintenance costs tend to vary, but usually total an annual average cost of around 1.5 times the monthly rental rate for the unit. A good management company will be transparent and communicative when it comes to maintenance fees. They’ll go over routine maintenance costs with you in advance and notify you to inform you of the expected costs when unexpected or emergency maintenance issues arise.
Looking for Property Management Services in Denver?
Are you looking for a quote on property management services in Denver, or are you trying to obtain information on a specific property management fee? Give us a call. At Peaks to Plains, we are committed to providing exceptional service to our customers, which includes providing property management services in Denver at a reasonable, competitive rate. Call us today to receive an estimate or speak to an expert to get more information.