Property Management Blog

Demystifying Management Fees: How Property Managers in Waterloo Earn Their Fees

EPM Iowa LLC - Wednesday, April 10, 2024

At EPM Iowa, we understand that navigating the world of property management can involve a lot of questions. One of the most common inquiries we receive is: how exactly do property managers get paid?

Here in Waterloo, Iowa, property managers typically utilize two main structures to generate income:

Percentage-Based Fees:

This is the most prevalent method. Property management companies charge a percentage, usually between 8% and 12%, of the monthly rent collected. This incentivizes them to keep your property occupied with qualified tenants and maximize your rental income. There can be variations within this structure, so be sure to ask if the fee is based on the asking rent or the rent actually collected.

Flat Monthly Fees:

Some companies offer a flat monthly fee, regardless of the rent amount. This can seem appealing at first glance, but it might not always be in your best interest. With a flat fee, there's less incentive for the property manager to find high-quality tenants or chase late payments.

Additional Fees to Consider:

There can also be additional fees associated with property management services. These might include:

  • Leasing Fee: A one-time fee for finding and screening tenants.

  • Marketing Fee: To cover the costs of advertising your rental property.

  • Maintenance Fee: To handle minor repairs and upkeep.

Transparency is Key

At EPM Iowa, we believe in clear communication. We'll outline all our fees upfront in our management agreement, so you know exactly what to expect.

Finding the Right Fit

The best fee structure for you depends on your specific needs and property. If you're looking for a company that's highly motivated to keep your property rented and maximize your income, a percentage-based fee might be ideal. If predictability is your top priority, a flat monthly fee could be an option, but be sure to inquire about the services included.

EPM Iowa: Your Cedar Valley Property Management Partner

We're here to answer any questions you have about property management fees or any other aspect of renting out your property in Waterloo. Contact EPM Iowa today for a free consultation and let us help you find the perfect property management solution!