Make More Revenue Without Adding New Units

Managing your company’s daily operations can consume all of your resources leaving you without the time, staff, or capacity to take on new properties. 

Are you covering your own expenses and still making a profit; or are you giving too much away for free? On the other hand: Are your rates in line with the competition given the services that you provide or are your fees scaring potential clients away? 

As we know; there are two Fees that any property management company can charge their Clients & Customers :

1- Management Fee ( Clients)

2- Tenant ( Customers )

MANAGEMENT FEES 

In general, the more value that you add to property owners’ portfolios through higher monthly rents and other revenue opportunities, the higher the fee you can justify when your contract comes up for renewal. In addition, the more effective you are at your job, the more likely your clients are to refer you to other property managers—increasing your overall share of revenue opportunities. 

PRICING STRUCTURES FOR PROPERTY MANAGERS 

Many property managers either charge a flat rate or a percentage of the rent each month. Most property managers prefer to charge a flat rate that includes a standard range of services, but one out of two property owners would rather pay a percentage of rent. 

FLAT RATES 

• The more services that your rate includes, the higher your fee should be.
• Rates vary, the important thing is to charge a flat rate that’s not only attractive to your clients but also helps your business’ bottom line. Before settling on a number, be sure to conduct a full analysis of your costs—including what it takes to maintain both occupied and vacant units. 

PERCENTAGE-BASED RATES 

• Alternatively, you might charge a percentage of the gross rent that you bring in, either per property or per owner.
• The higher the rent that you’re able to get residents to pay (and the more units that you manage), the more you make.
• The higher the rate you charge, the more services your client will expect to be included in that monthly fee. 

ALTERNATIVE PRICING STRUCTURES FOR PROPERTY MANAGERS 

While flat rates and percentage-based rates are the most common, some businesses find that their expenses aren’t sufficiently covered by their monthly management fees. If this is a challenge that your company faces, here are alternative pricing structures that you might want to consider. 

HYBRID RATES 

You collect a percentage of the rent for your monthly management fee, then charge a flat rate for services that your clients can elect to use.

PRICING TIERS 

Offer multiple pricing models—for example, Standard and Premium. Owners who want to outsource some property management tasks but handle others themselves might choose the lower-priced “Standard.” Meanwhile, investors who prefer to focus entirely on acquiring new properties might choose the higher-priced “Premium,” which covers a more comprehensive set of services. 

 OTHER MANAGEMENT FEES 

There is a range of additional offerings you can provide to generate additional revenue—while keeping your standard management fees competitive. 

Here are a few fees that some property managers choose to separate from their base management fees. 

• EVICTION FEES 
• LEASING FEES 
• ONBOARDING FEES 
• VACANCY FEES 
• MAINTENANCE FEES 
• PROJECT MANAGEMENT FEES 

RESIDENT FEES 

There are three main types of fees that residents pay to property managers:

Amenities fees: such as a pool, gym, parking garage, or storage area. While it costs you money to offer these amenities, it’s a great way to differentiate yourself from other communities in the area—and bring in a steady stream of revenue for your business. 

Convenience fees: Convenience fees are a small amount that you request from residents on top of a payment that they’re making. Sometimes, these fees cover a cost that your company has incurred— for example, your bank’s processing fee for credit card payments. However, some property managers leverage convenience fees to bring in extra revenue. 

Fines: Fines are used to discourage resident behaviors that have a negative impact on your business or community. You might decide to fine residents for smoking outside of designated areas, failing to clean up after their pets, causing damage to their unit, or making late rent payments. 

Other Ways to Generate Revenue from Resident Fees : 

• APPLICATION FEES 
• LATE FEES 
• PET FEES 

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