What does it cost to hire a property manager? It depends on where your property is, as well as factors including the type of property and the level of services you want.
Property managers can also enable you to purchase real estate outside of the city where you currently live, allowing you to do business in areas with strong growth potential. One such area is Kansas City, MO, where home prices were up 12.6% from last year. As of May 2022, the median home price was $278K.
We want to help you understand what to expect in terms of leasing and property management fees in Kansas City. So, in this article, we examine seven different property management companies in the area and the various fees they charge.
Leasing Fees for Kansas City Landlords
Most property managers charge a leasing fee to cover the work involved in finding a resident for the rental property. This could include:
Marketing the property
Holding showings
Screening applicants
Preparing the lease agreement
Some landlords may choose to use a property manager only during the leasing period, handling ongoing management themselves once a resident is placed.
Leasing fees can be fixed, but they are usually calculated as a percentage of the first month’s rent. In the Kansas City area, the average leasing fee is generally 50-100% of the first month’s rent.
Repairs and Maintenance Fees
Some property management companies will take care of maintenance and general property upkeep on your behalf. Working with a property manager to handle these situations may be less expensive because they may have relationships with local vendors and contractors that allow them to negotiate a lower price than you would be able to get on your own.
Many property management companies also coordinate the resolution of specific repairs when needed. Most businesses require landlords to keep a minimum reserve repair fund on hand to cover the cost of specific repairs. Your property management agreement will specify the minimum amount you must keep in your reserve repair fund and how you can authorize the use of these funds.
Leasing Renewal Fees
A lease renewal fee covers the costs of negotiating and completing lease renewal documents with existing residents. This fee can also be a flat fee or a percentage of the monthly rent. Lease renewal fees may be waived by some property managers.
In Kansas City, lease renewal fees generally range from $100-350 or 25% of the monthly rent.
Vacant Unit Fees
Property management companies may also charge a monthly fee for vacancies. Some property managers may also charge their full monthly management fee even if a resident is not found.
During vacancies, for example, we charge a monthly management fee for our flat-rate plans at Evernest. That cost includes monthly inspections while the property is vacant, providing you with peace of mind.
Eviction Fees
While it is uncommon, you may find yourself in a situation where you need to evict a resident. Your property manager can handle resident evictions for you; some charge a fee, while others offer an eviction guarantee with a premium membership tier.
For example, in Kansas City, Premiere Property includes eviction management in their full-service management pricing. At Evernest, eviction protection is included in our Platinum pricing plan, but landlords can also purchase an eviction protection plan as an add-on for an annual rate of $200.
Routine Inspection Fees
Routine inspections are essential for ensuring that your rental is well-maintained by your resident and for identifying problems before they become costly repairs. Most property management companies will charge a fee for periodic inspections or move-out inspections.
In Kansas City, inspections are generally included with the leasing fee or monthly property management fee, whereas additional inspections are available for a flat fee.
Contract Termination Fees
It is important to note that if you leave your contract with your property manager early, many companies will charge you an early termination fee. These fees can vary greatly, so take note of this in your contract.
At Evernest, we believe you should be able to terminate your contract with your property manager at any time if you are dissatisfied. We call it our 100% Happiness Guarantee.
Factors Affecting Property Management Fees
Many of the fees listed above are ranges because there are numerous factors that can influence the final cost of property management fees. Here are some examples:
Property Type: Depending on whether your rental property is a single-family home, a multi-family apartment complex, or a commercial property, the fees charged by your property manager will vary.
Property size: Size can also influence fees because larger properties may require more maintenance than smaller properties.
Property condition: A newer or renovated property may require less maintenance than an older property.
Neighborhood rating: If your rental property is located in a neighborhood with higher rents, your property manager may charge more than if it is located in a neighborhood with lower rents.
Market competition: If there is less competition for property managers in your market, they may be able to charge higher fees.
The extent of services: Ultimately, the scope of services provided by your property manager has a significant effect on the fees they charge. For instance, rent collection requires far less investment from a property manager than providing 24-hour resident communication, maintenance management, and financial reports.
Hire Evernest As Your Kansas City Property Manager
The Kansas City market is an exciting place to be a real estate investor, and hiring the right property manager can help you build your business and achieve the real estate outcomes you want.
Ready to get started? Evernest has made it our mission to provide hassle-free property management while also assisting in a consistent return on investment for our property owners. If you’re looking for a property manager, we’ve got your back!
In fact, we can prove it. We guarantee that we will find a qualified resident for your Kansas City rental property in 21 days or less, or your first two months of management will be free.
Strike while the iron (or, rather, the market!) is hot: send us an inquiry today.
Source: This content was originally written for and published by Evernest at Evernest.co.
