Property managers help landlords take care of their rental properties by doing things like finding residents, screening them, and taking care of maintenance issues. Owning a rental property can be financially lucrative, but it also takes more time and work than some landlords might think. Property managers save you time and energy so you can focus on growing your business.

But how much does hiring a property manager cost? It depends on where you live, as well as the type of property you’re renting and the level of services your property manager provides.

Property managers can even make it possible for you to invest in properties outside of the market you currently live in, so you can choose to invest in markets where the growth potential is high. For example, check out Tampa, FL. Here, home prices were up 23.9% compared to last year, selling for a median price of $415K as of July 2022.

In this article, we’ll compare the fees for nine different property management companies in Tampa to help you figure out what to expect regarding leasing and property management fees in this area.

Leasing Fees for Tampa Landlords

How much does it cost to hire a property manager? The price is determined not only by where you live but also by other factors such as the kind of property and the extent to which services are offered. These can include:

• marketing the property,

• holding showings,

• screening applicants, and

• preparing the lease agreement.

Some landlords hire a property manager temporarily to help them find a renter, opting to take over the day-to-day management themselves.

Leasing fees can be a flat rate but are generally calculated as a percentage of the first month’s rent. In the Tampa area, the average leasing fee ranges from 50-100% of the first month’s rent.

Many property management companies offer discounts on the leasing fee if you choose a higher membership tier that offers more services. For example, Evernest doesn’t charge a leasing fee at all for the Platinum tier.

Fixed vs. Percentage-based Property Management Fees in Tampa

Most property managers will charge you a monthly fee to handle the ongoing management of your rental. But don’t just go with the least expensive option; you should also look at what services are included in the price to see if it’s a good investment for your business.

Depending on the company you work with, the property management fee may be a flat fee or a percentage of the rent. A flat fee is a set amount of money that you pay each month. A percentage fee is a percentage of your rent each month.

In Tampa, flat monthly fees generally range from $79-249, whereas percentage fees range from 8-10%. These fees vary depending on various factors, including your rental rate, the type of property you have, and the scope of services provided.

Repairs and Maintenance Fees

Some property management companies will take care of repairs and general upkeep of your property. It may be cheaper to hire a property manager because they will likely have relationships with local vendors and contractors that allow them to get a better deal than you could on your own.

When it comes to specific repairs, property management companies also typically coordinate how these problems are fixed. Most companies require landlords to keep at least a certain amount of money set aside for repairs. Your property management agreement will say how much you need to keep in your reserve repair fund and how you can give permission to use these funds.

Leasing Renewal Fees

A lease renewal fee pays for the cost of negotiating with current residents and filling out the paperwork for additional lease terms. Again, this fee can be a flat fee or a certain percentage of the monthly rent. Some property managers will not charge you to renew your lease.

In Tampa, lease renewal fees generally range from $200-300 to 25-50% of the monthly rent.

Vacant Unit Fees

If your unit is vacant, your property manager may still charge you a monthly fee. This vacant unit fee covers the cost of inspecting your property regularly while it is vacant. This is because when a property is unoccupied, it is required by law to be inspected regularly to meet the terms of insurance policies and ensure the building maintains its integrity and safety.

Eviction Fees

Even though it doesn’t happen often, you may have to evict a resident. Your property manager can help you through this process. Some will charge an extra fee, while others will give you an eviction guarantee if you pay for a higher membership tier.

For example, at Evernest, eviction protection is included in our Platinum pricing plan. Still, landlords can also purchase an eviction protection plan as an add-on for an annual rate of $200.

Routine Inspection Fees

Routine inspections are important to make sure that your resident is keeping your rental in good shape and to find problems before they get worse and cost more to fix. Most property management companies will charge a fee for inspections that are done regularly or when a resident moves out.

At Evernest, each pricing plan includes move-in inspections, move-out inspections, and monthly vacancy inspections at no extra cost. Additional annual inspections cost $149 with our investor and gold pricing plans and are included with our platinum plan ($199/month).

Contract Termination Fees

Note that many companies will charge you an early termination fee if you break your contract with your property manager before it’s over. These fees can be very different, so include that in your contract.

At Evernest, we think you should be allowed to end your contract with your property manager any time you want if you’re not satisfied. We call it our 100% Happiness Guarantee.

Factors Affecting Property Management Fees in Tampa

Many of the fees listed above are included as ranges — that’s because multiple factors can affect the final cost of property management fees. These can include:

• Type of property: Whether your rental property is a single family home, a multi-family apartment complex, or commercial property can affect the fees your property manager charges.

• Size of property: Property size can also affect fees because larger properties can require more maintenance than smaller properties.

• Condition of property: A newer or renovated property can have fewer maintenance issues than an older property.

• Neighborhood rating: If your rental property is located in a neighborhood that commands higher rents, your property manager may charge more than if your rental property is located in a neighborhood that commands lower rents.

• Market competition: If there is less competition for property managers in your market, they may charge higher fees than if there is more competition.

• Extent of services: Ultimately, the extent of services your property manager provides plays a very large role in the fees they charge. Handling rent collection is a much smaller investment for a property manager than offering 24/7 resident communication,  maintenance management, and financial reports.

Hire Evernest As Your Tampa Property Manager

The Tampa market is an exciting place to be a real estate investor, and choosing the right property manager can help you to build your business and achieve your goals.

Have we convinced you to dive in? If you’re ready to work with a property manager, we’ve made it our mission at Evernest to provide hassle-free property management and deliver a steady return on investment to our property owners.

Plus, we can guarantee that we’ll place a well-qualified resident in your rental in Tampa in 21 days or less, or your first two months of management are free.

What are you waiting for? Send us an inquiry today, and let’s get started!

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All claims result from an industry-wide audit done by our in-house team. If we missed something or have provided incorrect information, please let us know at Inquire@Evernest.co.

Source: This content was original written for and published for Evernest at Evernest.co