1-855-512-RENT (7368)Many times property owners will call for a management fee quote on a single family home and ask why we charge a $100/ month flat rate instead of a 10% fee like our competitors. On the surface it looks like the percentage fee would be a better deal if your rent is under $1000 per month. That is not always the case. Many of the management companies charge a full month’s rent for leasing. REM Commercial charges ½ of one months rent. The table below can be used for comparison to show the flat rate fee is better in this scenario.
|
10% |
Flat Rate |
|
| $800/Month x 12= $9600 |
$960 |
$1200 |
| Leasing Fee |
$800 |
$400 |
| Total Annual Fee |
$1760 |
$1600 |
Be careful when comparing percentage fees to flat rate fees. Make sure you know the annual cost to manage your property. The monthly management fee is only a part of the equation and ALL costs should be considered in your decision.