People come to us all the time asking how much Pleasanton property management costs. Today, we’re talking about what we charge at Action 1 Properties and we’re comparing that to a different pricing model that other companies in the area might use.
All Inclusive Model
As an example, let’s assume your home is worth $2,500 a month. At Action 1, we provide our services based on a 10 percent service fee, which is based on the monthly rent. So if you’re getting $2,500 per month in rent, our management fee would be $250 per month. This management fee is all inclusive of our services. There are no additional charges at all. All of our fees are figured on a 12 month contract, or one year. So when you multiply 12 times $250, you know you’re getting professional property management for $3,000 a year.
In our area, companies might include other charges on top of the management fee. A popular fee is a signing fee. You might come across a property management company that only charges 8 percent in monthly management fees. That sounds like a lot less than 10 percent. If that $2,500 property is charged 8 percent a month, that’s $200 per month and $2,400 per year for professional Pleasanton property management. But this type of structure is not all inclusive. The company also charges a signing fee which is one half of the first month’s rent. So that’s $1,250. When you add that $1,250 to the $2,400, we have $3,650 in total property management charges for the year. When you compare $3,650 to $3,000, which one do you want to choose? The 10 percent is the better value.
Look for the services you’re getting with the management fees and compare that to what you’re paying. It’s not about the percentage that’s charged every month, it’s about what’s included. Even a 7 percent management fee will be higher in the long term than a 10 percent all inclusive charge.
Contact us at Action 1 Properties if you have any questions about our fees and services.