What's included in a property management fee? {Seattle Area} (Part 1)
Everybody who is entertaining the idea of hiring someone to manage their Seattle-area property knows that they have to pay for property management. But just what is covered in your property management fee? If you have a good property management company, you actually get a lot for what you pay. In this post we’ll look at some of the things that are commonly covered when you hire someone to manage your property. We’ll follow up in a later post.
Evaluate property to determine a realistic rental rate: A good property management company will take a close look at your property, noting interior and exterior conditions and make recommendations for improvements. Then based (among other factors) on what other properties in the area of similar character are generating, your management company will help you set a realistic rental price.
Market the property: It’s one thing to have a property that’s available for rent. It’s another thing altogether to get potential renters in to look and to get them to sign a lease. Your management company should help you get the property ready for viewing (inside and out), and initiate marketing activities (website listings, print listings, mailings, fliers, signs, contact with realtors, etc.) that will bring renters to the property.
Screen and Select Tenants: One of the biggest benefits of using a property management company is that you don’t have to screen all the prospective tenants. Experienced management companies no how to quickly eliminate poor candidates and perform background checks to verify identity, income, credit history, and rental history.
Oversee Tenant Move In: Your management company will provide the leasing agreement, confirm your tenant’s move-in date, and ensure that the tenant has signed all the legal paperwork covering the terms of the rental. They will also do a thorough walk-through with the tenant and get them to sign off on the condition of the property. They’ll also collect the initial payment and security deposit.
In Part 2 of this post, we’ll look at some of the other important things that should be covered by your property management fee—including some of those “uncomfortable” items that landlords sometimes face.