Property management contracts might seem complicated at first glance, so if you are currently planning to hire prominent Denver property managers and you want to know what services you will be charged for, here are the most common fee categories:
- A one-time set-up fee – most companies will charge a one-time fee for setting up your account with them. In most cases, the fee is around a couple of hundred dollars and it also involves an assessment of the current condition of your property;
- The management fee – this will be the principle fee that you will have to pay. It covers the daily management tasks related to your property and it is usually expressed as a percentage of the rent that your property manager collects on your behalf. The usual rate is around 10%;
- A leasing fee – most Denver companies charge a fee whenever a tenant leaves or is evicted and the property managers handles the re-renting process. Some companies charge a flat fee, while others a percentage of one month’s rent for the space for which they will be looking for a tenant.
The contract proposed by the property management company that you are considering should include very precise descriptions of the services that you will be paying for, so reading the draft very attentively is essential.