Effective Ways of Increasing Property Management Fees

April 23, 2014

by Oriah

Property, property management, property management commission, property management fee

Comments are off

The fate of property management business mostly depends on the role the property managers. Therefore, it is important that a property manager is well paid. In most cases, the property managers get a specific percentages of what they collect as rents and it ranges from 4% to 12%. Property management fees ranging from 8%-10% is considered standard for the property managers. However, a property manager getting about 4%-6% of the rents collected requires something to do in order to increase his/her fees. Following are some of the effective ways of increasing the property management fees:

Don’t Make Excuses:

Making excuses for increasing property management fee is not a good idea. If you think that you deserve more than what you get just explain to your client why they should increase your fee. Let them know how you have minimized costs and how you have managed to increase the rent fees in order to increase your monthly collection. If you go this way, the clients will not hesitate to increase your fee.

Make your clients Understand Your Value:

This is quite crucial. If you are doing an excellent job for your client you should let them know what good job you are doing and let them understand your value. This will help you to get a considerable amount of increase in your fee.

Quality of Service is Important:

Quality of service plays an important role in the increase of property management fees. Your clients will surely know about the kind of service you provide to your renters. They will evaluate how much you get and what service you deliver and then they will come to the conclusion whether you will get an increase in your fees. Therefore, you should be sincere to your job. You should maintain regular communication with the renters. You should be the first person to know if the renters are having any problem and then you should do everything possible to solve the problems. You should try everything possible in order to minimize costs without affecting the nice look of the property.

To Conclude, an increase in property management fees is important if you are really worth it. Don’t ask for irrational increase in your fees. Take into consideration what great job you are doing for your client and whether the total collection of rents have considerably increased in recent times and then ask for an increase in your property management fees. You don’t need to create a riot for an increase in your fees. Your value will help to earn you a good amount – possibly an increase of 1.5%-2% to your property management fees.