Using the services of an Auckland property management company can be highly beneficial, but paying the property management fees can be quite complicated and challenging. In fact, the complexity and inconvenience of these fees makes property owners reluctant to make the payment. Unfortunately, these fees are necessary and it is essential to make the payment for investment purposes. This article will provide information on property management fees and will explain more about the fees overall.
Needless to say, property management fees are not cheap and the amount is typically in line with those of other management companies. It should be noted, however, that each Auckland rental property will have a unique rental appraisal and therefore a unique fee. If a company specializes in managing commercial property, it is likely that the fee will be greater than a company offering services to residential property owners. Of course, the size of the property should also be considered as location and size of the building can influence cost of management.
The saying goes that you get what you pay for, and this is very true when dealing with Auckland property management companies. Despite the need to save money, the odds are stacked against you when you hire a company without experience. When finding a firm that presents with a high quality service, it is recommended that that you find a balance between fees and experience. You must not pay too little, but you should not pay too much either.
To determine whether the firm is charging the correct amount for their services, it is recommended that you review their project portfolio before signing an agreement. The portfolio can be found online and can be discussed with the professional during an initial consultation. It is important that you read testimonials provided on the official website as well. This will help identify the customer service quality before signing a property management contract.
It is important to remember that there are various types of property management fees charged by a professional management company. One fee that needs to be considered is the vacancy fee. The majority of companies do not require this fee; however, if the firm you are interviewing requests this option you should ask more in-depth questions regarding their skills. It is recommended you ask an attorney to accompany you on an initial consultation to avoid being taken advantage of.
Further property management fees include the set-up fee and the leasing fee. The set-up fee refers to the professional effort involved in setting up a management account. The amount of a set-up fee will vary dependent on the company and needs to be discussed beforehand. A leasing fee, however, is charged to compensate the property manager for the work conducted as part of finding a new tenant.
Additional property management fees that may be charged include lease renewal fees, property maintenance fees, advertising fees, reserve fund fees, and eviction fees. All of these amounts will vary dependent on the property and the firm used.