What a Property Manager Should Include for the Fee

The percentage on a management agreement is only half the story. The other half is what that percentage buys. Two managers can quote the same fee and deliver very different results, so it pays to ask each of them the same questions and compare the answers side by side.

What the fee should cover

These are the basics. If a manager charges extra for any of them, count it as part of the fee.

• Marketing and listing. Photos, listing copy and pricing for every platform, or advertising and showings for a long-term lease.
• Screening. Guests or tenants checked against the same written criteria every time.
• Collecting the money. Payouts or rent collected, late payments followed up, and a clear monthly statement.
• Coordinating maintenance. Requests triaged, vendors scheduled, work checked when it is done.
• Inspections. Photo inspections between stays or at move-in, during the lease and at move-out.
• Licenses and taxes. For short-term rentals, the city, county and state registrations and the monthly tax filings.
• Reporting you can check any time. Not just a statement once a month, but bookings, rent, work orders and invoices you can look up yourself.

What is usually billed separately

Some costs belong to the property, not the manager. That is normal, as long as you know about them before they show up on a statement.

• Parts and vendor labor. The plumber, the AC technician, the appliance part.
• Cleaning between stays. Usually paid out of the guest’s cleaning fee on short-term rentals.
• Leasing or placement fees. Some managers charge one when a new tenant signs.
• Platform fees. Airbnb, Booking.com and VRBO take their own cut of each booking.

Questions to ask at the sit-down

1. Up to what amount can you approve a repair without me? You want a number, not “it depends.”
2. Who answers an urgent call at night? A call center, a voicemail or a person who knows the property.
3. How are vendors paid? Some managers make you pay every vendor yourself and field the follow-up calls. Others pay the vendor and settle up with you on the statement.
4. Can I see the photos and invoice for every job? Without asking for them, ideally.
5. What happens when rent is late? Ask for the grace period, the late fee and when a formal notice goes out.
6. Can I see your owner reporting before I sign? A demo tells you more than a description.

How we answer them

For comparison, here is how The SIR Group handles each one.

• Repairs: anything over $500 needs your approval first. Urgent issues that risk damage are handled right away and reported to you.
• After hours: urgent calls go straight to Brandon.
• Vendors: we pay the vendor so the work is not held up, then deduct it from your next payout or invoice you.
• Photos and invoices: every work order, with photos, videos and the invoice, is in the owner app as soon as it is created.
• Late rent: rent is due on the 1st with a 5-day grace period. After that, the late fee in the lease applies and a formal notice is posted.
• A demo: ask for one and Brandon will walk you through the owner app before you sign anything.

Use the fee calculator to put your current fee in dollars. If you’re paying over 15%, let’s compare.