When figuring in a property management expense is it necessary to also include an expense for lawn care, snow removal, and garbage or are those things that the property management company takes care of? if so are there any other expenses that might be included in the property management expense?
This will vary from property manager to property manager I’m sure. However, generally the management fee only includes collecting rents and handling the contractors (lawn care, repairs, snow removal, utilities, etc.) they will generally pass-through these expenses to the property owner.
@Scott Anderson Ok thanks for the response!
You absolutely need to account for this beforehand but it will all depend on the contract with the management company. Also be aware that if the property manager works with those contractors they may charge a service fee on top of whatever the cost is. Read the contract carefully because the fees will add up very quickly.
Thanks @Peter M. exactly what I was looking for. Also thanks for the tip on watching out for that extra service fee. Much appreciated.
I have PM’s in several states and they all outsource lawn care, maintenance, etc and bill me for it in addition to their fee. On average I have about $75 a month per door in expenses above the PM fee.
The PM may take care of getting those things done but it will likely be at your expense so you should plan on something for those expenses as well.