Property management at just 5.9%
Here at Renttoday.us, we enjoy making each and every step of our Property Management process completely easy to understand and transparent. We don’t want you to have any surprises or leave wondering what in the world you just signed up for! So, having said that we would like to explain the who, what, why, and when of our 50% leasing fee in our Property Management contract. First things first….a random real estate agent will charge you 6% of the lease term for leasing up your home which is usually much more than our 50% lease up! An average home at $2000 per month at 6% is $1440 compared with just $1000 at 50%….that’s a $440 savings right off the bat. Also, don’t forget, WE CHARGE NO UP-FRONT FEE FOR LEASING YOUR RENTAL HOME like most other Property Management companies AND our management fee is lower than most and we do not nickel and dime you with lease renewal fees, admin fees, etc. It’s just 5.9% per month and 50% lease up…sweet and simple.
Why is this important? It’s important because it means we have confidence in our Property Management services and can deliver on what we have promised. Therefore, we do not get paid until we have leased your rental home. It also gives you the assurance that we are not going to take your money and leave you high and dry.
Virtually, we carry all the risk. What risk? The financial risk associated with doing business with you. Once we agree to take on your rental home (and usually beforehand) we start incurring expenses on your behalf. We pay your sales executive to schedule an appointment with you, drive to your home, do an inspection, take photos, and talk with you including providing them with a company car, gas card, blackberry, laptop, internet air cards, digital camera, car insurance, health insurance, etc. to help them get their job done as efficiently as possible and appear as professional as possible. This all takes a lot of time and energy and we need well paid professional folks to get this job done. I really don’t think you would sign up for our property management services if some wierd showed up who looks like they should be working at McDonalds (no offense to McDonalds employees…just making a point).
We then pay other employees to market your home by listing it on over 40 different websites, the MLS, and reposting every single day on Craigslist. We also pay even more employees to take your prospective tenants calls, review their applications, pull their credit reports, and schedule showings all within a timely manner and with a smile. All of these happy employess are your sales team and are working hard to accomplish one goal and that is to lease your property quickly, efficiently, and to a qualified tenant.
You may not know this but Renttoday.us is the only Property Management company that pays for the tenants credit reports ourselves and does not charge an application fee! This helps immensely to encourage more people to apply for your home (this is normally a $30 per person fee). Because we do this, our website Renttoday.us is one of the busiest Property Management sites on the internet with over 40,000 unique visitors every single month. And speaking of website, we have a team of employees who do nothing but concentrate on making our site bigger, better, and more able to serve you and your tenants needs faster, quicker, and easier. This is no small task and some of our staff are even located outside the country in India! We think that’s pretty cool. I mean, we can go get a cheesy template website for $15 per month like most of the other management companies but what would that say about us? It would probably say we didn’t put much thought into our company and probably won’t even be around next year…we really don’t want to convey that message and that is why we work hard everyday to improve our site and make it as professional and user friendly as possible to attract as many tenants as possible and make you, our client a happy camper!
And if all that wasn’t enough, we also pay even more employees to just stay by the phone in case you call in our offices with a question or send an email, they’re called our customer service department and unfortunately, they’re not free. These are all immediate costs that our company takes on when we take on a property management client and before any money is taken. It’s a lot isn’t it? And the only reason we are taking the time to explain this is so you as the client can appreciate all that goes into a property management company or at least all that goes into OUR Property Management company, Renttoday.us and know that it’s so much more than dropping a sign in the yard and placing an ad….soooooo much more!
So, in the event your home doesn’t lease because it’s not listed at the proper price, you cancel because you are no longer being transferred to Alaska, you decide to let your cousin move in and don’t need us to manage the property anymore….all that effort and cost has gone to waste and we’ve actually lost money on your account. Therefore, we bear the financial risk of taking on your property. And that’s fine, we understood this when we came up with our policies. We’re betting on the fact that we do provide great service and there will be more great customers than bad ones.
In addition to all of the above costs we just described, once we lease your home we also have to pay out leasing commissions to real estate agents. Whether the home was leased by an agent inside our offices or through the MLS, these folks normally want to get paid for driving your tenants around and showing them countless homes before deciding on yours. The average commission is anywhere from $200 to 3% of the annual term of the lease! We pay for this out of the 50% leasing fee and hopefully there is something left to cover the other costs, our overhead, and (gasp!) maybe, hopefully the company can make something too. Afterall, this is how we stay in business, how our company can grow, and in turn how our economy as a whole works and thrives. And don’t forget, if other companies take less, they’re probably doing less, too! You get what you pay for! That’s just not some random saying…it’s really true.
When you break down all the costs, the 50% doesn’t really go all that far at all.
Soooooooooo, in summary…..THIS IS WHY & WHAT WE DO WITH THE 50% WE TAKE FROM THE FIRST MONTH’S RENT WHEN WE LEASE YOUR HOME.
HOPEFULLY, IT MAKES PERFECT SENSE & BY THIS TIME ARE WONDERING HOW WE EVEN GET BY ON JUST 50%