A property management company acts as a liaison between you and your tenants. It is very important to find a company that will provide the best service for your money. Services may be ala carte or an inclusive package. Service fees will vary because there is no actual service fee structure in the industry. There are common fees based on purpose. Eventually you will need to compare companies' fee structures to select the ideal company for you. The most common fees and their descriptions are explained below.

Commission: This is a monthly fee charged to the owner as compensation to the property manager. The property management is responsible for overseeing management of the owner's property. The typical fee varies from 3% to 15% of the monthly rent. Instead of the percentage, a preferred choice is to charge a flat fee, ranging from $50 to as much as $200 monthly.

Lease-up or set-up fee: A fee charged to the owner as compensation to the property manager for initial setup, time, and resources invested in setting up, showing, and activities that result in tenant placement. It is comparable to a finder's fee. This fee is deducted from the rent proceeds from the deposit and first month's rent. Some managers require this fee upfront before finding a tenant. This one time fee may be as high as one month's rent or as little as zero.
Loss Renewal fee: A fee that varies from zero to $200 or more, charged to the owner when a current tenant's lease is renewed. It is used to cover the costs of initializing a new lease document. Year end inspection may be justification for the fee, which may be charged every time a lease is renewed.

Advertising Costs: The advertising costs are paid either by the property management, owner, or the costs is shared. Should the management pay, the fee is likely covered under the lease-up or setup fee. If this is true, make sure to find the details of the marketing plan such as what type of advertising is to be used. For instance, will it be featured on the company's website, or on free online classifieds, or any other free venue? If this is true, you will not get your money's worth if the advertising is free. Many online sites offer good rental or tenant resources that will for a fee provide advertising services that lure qualified tenants. While considering them also consider sources such as print media, yard signs, MLS listings, or perhaps an open house. A vacant property does not produce income when the property manager limits advertising.

Maintenance Mark-up charges: This is a little known cost incurred that will shave your profits. It is an additional charge or mark up that is added to a maintenance or repair bill. The work may be completed by in-house maintenance or vendors. A contract with the property managers should have the fee explained in the contract. Basically, if a bill is $200, and the fee is 10%, then the bill will be $220.

Early cancellation fee: This fee which may range from $0 to $500 and it allows you the owner to cancel your agreement with the company if you are not satisfied. If after a period of three months and the property remains vacant, you may for this fee cancel the agreement. The fee will help cover the advertising costs, legwork, and time invested in the property.

"You got to be kidding me" fees: The ones I have personal experience with.

.Your property remains vacant but we will still charge a monthly commission or flat fee.
."A For-Rent yard sign fee." I think that was $25 per month.
."Preventive maintenance fee" for just in case and about everything. If nothing happens they keep the money. This fee is about $25 month.

Always read your manager/owner contract, be aware of what you are signing, asks questions, and know what services are included in the fees. A reliable real estate lawyer will help you to build a contract that is suitable to all parties, although they may not be concrete. In case the property manager does want to negotiate, always remember other companies will gladly do business with you.