Base Monthly Management Fee
The price range you will find in Columbus when reviewing property managers management fee pricing is anywhere from $45/mo flat-rate to nearly $250/mo. High-rent property (if you hire a percentage-of-rent priced manager) will push you towards that $250/mo or more mark. Some managers charge a percentage of rent and other managers charge a flat, per month management fee.
Total Cost of Management (Fees and Other Charges)
Be sure to calculate the total cost of management which includes setup fees, leasing fees, leasing renewal fees, markups on maintenance, marketing fee, technology fee, etc. We sometimes hear that these fees are "hidden". All the managers we know of in Columbus do disclose them in multiple ways including on the property management agreement so a careful review of the documents received is warranted.
Cost is Not That Important
The cost of management is probably the least important part of your hiring considerations. A single decision by a property management company (on something like leasing or maintenance) can either cost you tens of thousands or save you the same. We wouldn't recommend fixating on trying to save $20 or $30 dollars a month. Instead, focus on the managers experience, their clearly defined process/systems, and their reputation.
Are they a good fit for YOU?
You'll want to make sure they are a good fit for your needs and expectations.
Assistant Type Managers - These property managers are very flexible, will do pretty much whatever you ask, call you all the time with updates, etc. They are more like your assistant. Some owners prefer this approach either because they just became landlords and are not comfortable handing over all decisions or because they prefer to be involved with the management to some degree.
Systems Defined Managers - These property managers take a systematic approach and make owning the property a hands-off experience for the owner. They take the lead and treat the property as if it was their own investment. You will rarely hear from them because they are busy managing your property and making decisions on your behalf. This is great if you don't want to worry about what's going on and want someone else to handle everything. This option is probably best for an owner who is comfortable leaving large and expensive decisions to professionals. A manager may not always do things exactly like the owner would have and you would have to be willing to accept this.
Both approaches are needed in the market and usually you (as the owner) will prefer one approach over another, so try to find out which one the companies you are looking at subscribe to.
For more help on choosing a property manager, see our previous blog post on “How to Pick a Property Manager”.
If you are looking for a property management team that has several decades of experience dealing with issues like these, do not hesitate to reach out to RL Property Management Group. Contact us here.
RL Property Management Group, the only property management company in Columbus started and run by engineers. Our clients enjoy a premium property management experience without paying a premium price. RL Property Management is designed to provide our clients reliability and performance.