If you want to invest in other nations, make sure you understand the existing laws on all aspects of property investment. We covered some of the basics for bringing a tenant into your newly acquired GO Zone property in Part 1 of this series. In this post, we’ll go over your options for finding a tenant and, more importantly, getting the cash flow going as soon as possible.Do you want to learn more? Visit Polaris Property Management, LLC
I’ve seen it time and time again where someone chooses one management firm over another purely on the basis of fees. After dealing with poor landlords, bad accounting practises, and other issues, the few hundred dollars they saved turned into thousands of dollars. Here’s a quick rundown of what you can expect to pay in terms of fees.
Monthly management fee: usually 7-10% of received rentals, depending on the sector. Higher rents typically imply lower monthly fee percentages, whereas lower rents imply higher percentages. A few businesses can charge a fixed monthly fee ranging from $50 to $100 per month.
Leasing Fee: Typically, 50-100 percent of the first month’s rent; however, this varies based on average rent levels. Most property management firms hire commissioned leasing agents who are charged a percentage of the contract, normally up to 50%. Set-up Fee: This is normally about $100 and is paid for the time it takes to set up new accounts, create bank accounts, and so on. Vacancy Fee: On a vacant unit, certain management firms will charge a monthly flat fee. Their logic is that a vacant unit always needs someone to check on it on a weekly or biweekly basis to ensure that it is safe, that the yard is in good order, that rental signs are in place and visible, and so on. Just about half of property management firms charge for this service, according to my research. Unfortunately, I’ve discovered that half of those who don’t charge for this don’t check the properties on a regular basis, and a minor issue may quickly escalate into a larger, more costly problem.