What is Included in Property Management Fees - Kelowna Property Management - article banner

Owners and landlords are always asking about how much professional property management costs in BC, Canada. The answer is not so simple. It depends on the type of rental property you own and the company you choose to manage it.

More important than cost is value. When you’re evaluating property management fees, look past the dollar amount and talk to the management company about what’s included in those fees. You may find yourself choosing a company with dramatically low fees but also a huge lack of services. Sometimes low management fees mean everything you expect to be included will actually cost extra.

Here are some of the general things you should expect when you’re paying those management and leasing fees.

One Time Leasing or Letting Fee

The first fee you are likely to encounter is the leasing fee or the letting fee. Sometimes it’s also referred to as the tenant placement fee. Usually, it costs the equivalent of one month of rent. Some companies will charge more and you may find a company that charges less. Everything should be covered in the one charge, including:

  • Reviewing the property’s condition to ensure it’s ready for the rental market
  • Pricing your home according to comparable properties and the market
  • Taking high-quality photos and writing detailed advertisements for your listing
  • Advertising your property online and through other marketing channels
  • Scheduling showings and tours of your property when tenants are interested
  • Answering questions and responding to inquiries
  • Managing the tenant screening process and background checks
  • Collecting the damage deposit from your new tenant
  • Signing the lease agreement
  • Completing the move in inspection

This is a fee you will only pay once at the beginning of your lease agreement after a new tenant is located and placed.

Ongoing Kelowna Property Management Fees

While the leasing fee is only paid once, the management fee is typically paid on a monthly basis as a percentage of the full month’s rent paid by the tenant.

There’s a large range in Kelowna for what rental property management companies charge. Generally, the minimum amount you can expect to pay is 7 percent of the rent that’s collected, while the maximum amount will be around 12 percent of the rent that’s collected. Average property management fees in British Columbia are around 10 percent of one month’s rent.

If you’re paying a 7 percent monthly management fee, you’re likely not getting a full-service plan. If you’re paying the 10 or 12 percent, you should have everything included and there should be no additional rental management charges.

Some landlords like to pay one flat fee that covers everything. Others prefer to pay a lower fee for the basics and then add on the other services they need, for additional charges. Most management companies will structure their services and fees in a way that you’ll find a plan or a program that meets your needs.

Every property is different, and so is every investor. If you’re looking for a property management company in Kelowna, Vernon, or any city in British Columbia, always ask to see a management agreement before signing a property management contract. Have a transparent conversation about costs.

At Vantage West Property Management, our letting fee & monthly fee takes care of the following management services:

  • Tenant screening
  • Collecting rent for you on time
  • Dealing with tenant disputes, upholding the Residential Tenancy Act, and enforcing your lease agreement
  • Taking care of emergency repairs and routine maintenance
  • Advertising costs of finding a new tenant

If you’re concerned about having a vacant unit and losing out on rental income, we offer a guaranteed rents program to give you peace of mind. We also offer a discounted rate for owners with multiple rental properties.

Property managerOur company is completely transparent when it comes to what we charge our owners for property management services.

We’d be happy to talk more about property management costs in general or our specific fees in the Okanagan Valley. If you’re thinking about hiring a property manager, contact us at Vantage West Property Management. Our local real estate experts and property managers are happy to share first-hand experience with you to get the most out of your investment properties – with the least effort on your part.