There are literally hundreds of management companies in Miami big and small. Some management companies only serve HOA (Home Owners Associations), others are dedicated to managing residential properties, others only want commercial/retail, etc. All these companies charge a fee for their services and these fees will vary with service rendered. In this article we will describe companies that manage residential properties. These residential properties are either owned by investors, investment funds, absentee owners, or owners with second homes. The properties can be either single family homes, condominiums, townhouses, and multi-families. Now we will detail how much do these Miami Property Management Services Cost.
The Flat Rate Fee for Miami Property Management Services
This is the least common method used by property managers. The fee can range from $90 – $125 dollars per unit. Some companies offer a discount if you own multiple properties. This type of fee is more beneficial to owners. With the Hot Rental Market the way it is, the rent value will increase but the management fee stays the same which results in lower cost to the owner. Companies that use this method tend to manage large amounts of properties and have discovered ways to cut cost while offering a higher quality of service.
Be aware that cheaper may have hidden cost. Make sure that you ask for a price list and make sure you know what are all the fees before signing a property management agreement.
Commission Based Fee or Percentage Fee
This is the most widely used method of charging property management fees in Miami. The percentage usually charged range between 8% – 10%. Most management fees will start at 10% and depending on the quantity of properties being managed the percentage can go down. This method is more beneficial to the management companies as rental values go up the more the company earns.
Property XYZ is rented for $1,500 X 10% = $150.00 is the management fee
The commission based fee will fluctuate with the current rent. Again be aware if the management company have any other hidden fees before signing a property management agreement.
Leasing Fee for Tenant Placement
This fee is usually the same for all Miami property management companies. The fee charged is equal to one months rent. In other words if the rent being charged is $1,500 than the leasing fee will be $1,500. This does not mean that the management company or property manager will earn the entire $1,500. The listing fee may have to split the commission with another real estate agent if two agents are involved in the transaction.
We at Miami Property Management LLC, charge a flat rate fee to our clients. The most you will pay is $89.95 and the fee goes down with more properties you own. You are locked in that price forever even if rents continue to go up your fee remains the same. There is no hidden fees or start up cost. Since our incorporation in 2009 we have learned how to cut cost. Our web based service have made our procedure very effective and helps us reduce our cost and we pass those savings to our clients. We are in the business to help owners reach their real estate goals. Contact Us today and ask us how we can help you make the most money out of your property.