How Much Does Property Management Cost
Deciding which Phoenix property management company to use can be difficult.
This isn't something that you "shop" for very often- and understanding the various pricing structures between Phoenix property management companies can be confusing. Between the combination of percentage based fees, flat-fees, one-time fees, and other charges it is easy to be left with the "How Much Does It Cost" question still lingering.
At SGI, our pricing structure is that of a Flat Fee, Pay for Performance model.
What does this mean? That we charge you for just a few things, and those charges are "flat rates". Easier to understand. Transparent. And affordable.
What are the fees?
- Leasing Fee- $699: No...this is not due up front. We are "Pay for Performance" so you don't owe a dime until we've begun working for you. The leasing fee, charged when a resident moves into your home. This means we have incentive to market the property in the best way possible, be prompt in scheduling showings to prospective residents, and to qualify applicants in an expeditious manner. We don't get paid until you get paid...so our goals are aligned!
- Monthly Management Fee- $89 (have more than 1 property? Contact us about multi-property discounts!!): Only when the property is occupied by a resident do we charge you a monthly management fee. We know, it seems strange to us that someone would expect you to pay a monthly fee when your property is vacant. This is something to look for when you are shopping and pricing management companies in the Phoenix area. If it's important to you that you only pay for management services when the property is occupied...then ask! Want to know what you get for $89 a month? Take a look at the list on this page- we think it is quite a bargain!
- Renewal Fee $250: Our goal is to place and keep qualified residents into your home. When we are successful in doing so and re-negotiate terms with the existing resident, the renewal fee comes into play. It is to everyone's benefit that, should the current resident be suitable, they stay in the property and keep it performing for you financially. We recognize this and have a 72% renewal rate with residents. This has resulted in huge savings of lost rent due to vacancy for our clients!
What else should you know about property management pricing, fee's, and costs?
- We are tax deductible! That's right, we take care of the dirty work and are completely tax deductible as an expense to your property at the end of the year. Go ahead, ask your CPA about it!
- We ARE NOT the biggest expense you should be worrying about. It's true. The biggest expense you will incur on your property year after year is not a property management company. Maintenance is what you will spend more money on each year.
- Tell Me More About this Maintenance Expense!: We are SO glad you asked. What is THE BIGGEST question you should be asking a property manager you are considering hiring to manage your home? "How much of MY RENTAL INCOME will be going toward maintenance? Unfortunately, most companies will not know the answer to this question. What is our answer? 5.6% This means that across aallll of the properties we manage for our clients, their average maintenance costs are 5.6% of their rental income. If the rent is $1,000 then the average maintenance expense is $56. 10% is widely considered an industry average. Through proper vendor selection and management, we are able to SAVE our clients an average of $44/mo, or $528 per year above the average. How much your property manager charges in monthly management fee is important, but the real thing to focus on is how well is the maintenance process going to be managed for your property!