The Tampa real estate market is an attractive option for multifamily rental property investors looking to dive into a prosperous venture in a booming city. If you are a multifamily investor or a potential investor, you’ll want to understand the cost of multifamily rental property management from a full service property management provider.
There is a misconception that property management fees eat into rental income, however, the expertise of a property manager significantly enhances the success and profitability of multifamily rental properties. Because of the wide variety of property management companies in Tampa, it can be difficult to navigate the decision making process. Working with an experienced property manager not only ensures the smooth operation of your rental property, but also aides in the optimization of your income and financial returns — it’s a win-win!
We know the importance of ensuring your investment is in the right hands, and we want to help point you in the right direction. Here is everything you need to know about the cost of multifamily rental property management in Tampa from a professional property manager!
Are All Property Management Fees the Same?
Multifamily property management fees vary depending on many factors, including the size of the unit, location, and the property management provider.
Many property management companies have standard fees for small scale multifamily units such as duplexes and triplexes, or complexes with 2-3 units. However, property management fees for large scale apartment or condominium complexes will vary significantly from case to case.
At The Listing Real Estate Management, we have experience managing all types of real estate, including triplexes, duplexes, and large apartment complexes. The information provided in this article is the standard for small scale multi family units. For more information regarding large-scale multifamily units, contact us today and we will be happy to provide you with an in-depth rental price and property management analysis!
What is a Multifamily Property Management Leasing fee?
Most Tampa multifamily property management companies have a leasing fee. This fee covers the cost of the process to find a tenant for your vacant rental property. This fee typically ranges from 50%-100% of the monthly rental rate, depending on the property management company.
It is essential to consider each company’s process for finding tenants. If a property manager is charging 100% of the rental rate and accepting the first applicant without a screening process, this is not the property manager to go with. Not only does this show a lack of experience, but it also shows a lack of respect for you and the success of your investment. The only way to ensure the reliability of your tenants is to conduct a thorough screening process — an essential part of our tenant placement process here at The Listing.
For example, at The Listing Real Estate Management, our property management leasing fee covers:
- Listing the property for rent
- Marketing the unit with photos and description
- Showing the vacant property
- Screening applications
- Lease signing
- Move-in inspection
The multifamily leasing fee allows property managers to fill vacancies quickly and efficiently, ensuring the reliability of tenants, a smooth and successful rental experience, and an optimal return on investment.
What is a Multifamily Monthly Management Fee?
Another standard property management fee is the monthly management fee.The monthly management fee includes the services provided for the daily operation and management of your rental property.
The monthly management fee typically includes services such as:
- Rent collection
- Online owner / tenant portal
- Property accounting
- Rental property repairs
- A designated property manager for your property
- Tenant communications and compliance
- Lease enforcement
Once a tenant is placed, your property manager will assume responsibility for all aspects of managing your property. This fee enables property managers to take over all daily operations, from tenant communication to facilitating emergency maintenance, allowing rental property owners to reap the benefits of earning a passive income.
The industry standard for a professional property management monthly fee is between 8-10% of your monthly rental income. While Tampa’s average monthly property management fee is 10% of the monthly rental amount, the fee will vary depending on the company, location, and size of your multifamily property. This fee will be charged monthly.
What is a Multifamily Property Management Lease Renewal Fee?
In addition, Tampa property management companies typically charge a lease renewal fee for multifamily rental properties. If your tenant decides to renew their lease, your property manager will have to complete some essential administrative tasks. All rental property owners and managers should strive for lease renewals and tenant retention; when you find a responsible tenant, you want to keep them.
Your property manager will assess the current market trends prior to the lease renewal
to ensure your rental property investment is operating to its full potential, producing maximal income and financial returns.
The lease renewal fee will cover administrative tasks such as:
- Conducting an updated rental analysis
- Offering new renewal rate for current tenants
- Contacting and Following up with existing tenants to see if they would like to renew
- Preparing and sending the new lease agreement
- Following up with tenants to ensure the lease is signed
Property management companies will either have a flat fee or percentage based fee for lease renewals. Some property managers will charge a cheap flat fee ranging from $100-$500, while others will charge a percentage of one month’s rent. The standard lease renewal fee in Tampa is 25% of one month’s rent.
While the cheap flat fee can be enticing, it’s essential to note that the cost may be made up in other ways like hidden fees or expensive monthly management fees. I always recommend choosing a property manager with percentage based fees instead of cheap flat fees — these companies are typically transparent and fair with their property management pricing.
Additional Tampa Property Management Fees
In addition to the standard property management fees, some property managers will charge additional fees. Unfortunately, these fees typically cost more than anticipated and sometimes come unexpectedly, we call these “hidden fees”.
Typical hidden fees for multifamily property management include:
- Startup fee
- Rental Marketing fee
- Lease preparation fee
- Inspection fee
- Maintenance up-charge fee
- Home warranty coordination fee
- Eviction guarantee fee
- Cancellation fee
Property managers with hidden fees often take advantage of their clients, sending bills with unexpected charges and catching you way off guard. As an experienced property manager, my best advice is to conduct thorough research of your potential property managers to avoid unexpected fees and expenses. Ask about all fees and read the property management agreement carefully to ensure there is no complicated clause stating the right to charge you for additional necessary services without approval.
Property Management Cancellation Fee
One fee to look out for is a property management cancellation fee, which is typically a hefty charge and an attempt to discourage clients from canceling services. Some property management companies will charge as much as one full month’s rent just to cancel.
In my opinion, property management cancellation fees are unnecessary and a big red flag. Cancellation fees are typically a sign of inexperience and a lack of professionalism. If a property management company knows their ability to provide best-in-class services that allow your property to flourish, they will not feel the need to charge a cancellation fee. The companies with this fee often expect clients to cancel because of previous experiences and lack of success.
At The Listing Real Estate Management, we do not charge a cancellation fee. We believe in our ability to successfully manage your multifamily property while taking the time to educate, align, and serve as a guide for each of our clients.
Tampa Multifamily Property Management
Property management is the cornerstone of success for your multifamily rental property. Whether you’re a first time rental property owner or a seasoned investor, hiring a professional property manager will be a significant factor in the overall success of your rental property.
At The Listing Real Estate Management, our multifamily property management is the key to unlocking your property’s full potential. Our best-in-class full-service property management allows rental owners to take a back seat in the daily operations, leaving all the tedious and difficult aspects to our professional team.
We value your investment as if it is our own, and we will guide you through every step of the process to maximize your income and ease the stress of doing it on your own. Whether it’s communicating with tenants about quarterly inspections, or hiring the most experienced restoration company, we’ve got you and your multifamily investment covered. For more information, contact us today at The Listing Real Estate Management, your boutique property managers!
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