Hiring a property management company can save you time and effort, but understanding the costs is important for your budget. Different fees can apply depending on the services provided. Here are the key factors to consider when calculating property management Calgary costs.

1. Management Fees

Management fees cover daily tasks like rent collection, tenant communication, and coordinating maintenance. This fee is usually a percentage of the monthly rent, typically ranging from 8% to 12%. For example, if your property rents for $2,000 per month, you’d pay $160 to $240 monthly. Some companies may offer a flat fee, depending on the property size or the number of units.

2. Leasing Fees

Leasing fees are charged when a new tenant is placed in your property. These fees cover advertising, tenant screening, lease preparation, and property showings. The fee often equals 50% to 100% of one month’s rent or may be a set fee. Since this is usually a one-time charge, it’s important to confirm if renewal fees apply when leases are extended.

3. Maintenance and Repairs

Maintenance fees cover both routine upkeep and unexpected repairs. Commercial property management Calgary may either have an in-house team or hire outside contractors. While regular maintenance is covered within the management fee, specific repairs may have additional charges, often with a markup. It’s essential to clarify what maintenance services are included and the costs for larger repairs or emergency issues.

4. Vacancy Fees

Some companies charge vacancy fees to maintain the property while it’s unoccupied. This may include property inspections, keeping the property secure, or minor repairs to ensure the property is ready for the next tenant. Vacancy fees are usually lower than regular management fees but can add up if your property remains vacant for an extended time. Ask about their vacancy fee structure before signing.

5. Lease Renewal Fees

When tenants renew their leases, a lease renewal fee may apply. This covers the administrative work involved in preparing new paperwork, updating lease terms, and negotiating any rent changes. Renewal fees are usually less than leasing fees for new tenants and can be either a flat fee or a small percentage of the monthly rent. Always check the renewal fee policy upfront.

6. Eviction Fees

Evictions can be stressful, but property managers handle the process for an additional fee. Eviction fees cover court filings, serving notices, and coordinating with legal professionals. The cost can range from several hundred dollars depending on the complexity of the case. While evictions are rare, knowing these fees is essential to avoid unexpected charges if problems arise with tenants.

Final Thoughts

Understanding property management costs is key to making an informed decision. Fees like management, leasing, and maintenance all add up, but they save landlords time and stress. It’s important to ask about every potential cost before agreeing to any contract. That way, you can ensure property management works within your budget while helping you run your rental smoothly.