How Much Do Property Managers Charge in Orlando

The cost of hiring a property manager can vary, but it largely depends on your property's market. Factors such as the type of property and the level of services you want can affect the total cost of property management.Working with a property manager is valuable because it saves you time and makes it possible to invest in real estate outside of the city where you currently live. This means you can invest in markets with strong growth potential, like Orlando, where home prices were up 19% from last year. As of June 2022, the median home price was $375K.If you want to invest in the Orlando market, we’re here to help you understand what to expect in terms of leasing and property management fees. This article covers fifteen different property management companies in the area and the various fees they charge.Before we begin, it’s important to know there are instances when a property manager (specifically, Evernest) might not be a great fit for you. In this video, we show a few ways to know for sure:  https://www.youtube.com/watch?v=UWY0_YEOK-8

Leasing Fees for Orlando Landlords

The first fee to be aware of is a leasing fee. The leasing fee covers the work involved in finding a resident for your rental property. This could include the following services: 

• Marketing the property 
• Holding showings 
• Screening applicants 
• Preparing the lease agreement 

You can also choose to work with a property manager during the leasing period only. Once a resident is placed, you can opt to handle the ongoing management yourself.Leasing fees can be fixed, but they are usually calculated as a percentage of the first month's rent. In the Orlando area, the average leasing fee generally runs from 50% of the first month’s rent on the low end and up to 100% of the rent on the high end. These fees are listed as ranges because it’s common in the Orlando market to see companies offer lower leasing fees with their premium membership tiers. Examples include Evernest, Specialized Property Management, and Mila Realty.

Fixed vs. Percentage-Based Property Management Fees in Orlando

Next, your property manager will charge a monthly fee to cover the ongoing management of your rental. When comparing options, don't just opt for the cheapest rate! These fees vary depending on the scope of services provided, so it’s important to consider what services you’re looking for to evaluate whether the fee is worth it. Depending on your chosen company, the monthly management fee may be a flat rate or a percentage of your monthly rent.In Orlando, flat fees generally run between $100 and $200, whereas percentage fees range from 8% to 10%. 

Repairs and Maintenance Fees

Some property management companies will coordinate maintenance, specific repairs, and general property upkeep for you. While it might seem like it would be cheaper to handle this on your own, working with a property manager to handle these situations can be more cost-effective because they often have relationships with local contractors that allow them to negotiate a lower price than you would be able to get on your own.Most property managers will require you to keep a minimum reserve repair fund on hand to cover repairs outside of general upkeep. Your property management agreement will cover the minimum amount you must keep in your reserve repair fund and the process for authorizing the use of these funds.

Leasing Renewal Fees

When your resident wishes to renew their lease, your property manager may charge a separate lease renewal fee to cover the costs of negotiating and completing lease renewal documents. Lease renewal fees are sometimes waived, depending on the company you work with or the membership tier you’re a part of. In Orlando, lease renewal fees generally range from $200-300 or 25% of the monthly rent. 

Vacant Unit Fees

If your unit is vacant, your property manager may 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

It’s not common, but all landlords should be prepared for the possibility that they may need to evict a resident. Most property managers will handle resident evictions on your behalf. Some charge a fee, while others offer an eviction guarantee in their monthly management price.At Evernest, for example, 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.   

Further reading: How To Navigate The Eviction Process As A Landlord

Routine Inspection Fees

Routine inspections verify that your resident keeps your rental well-maintained and allow you to identify problems before they grow into costly issues. Some property managers will include all inspections in their monthly management fee.

Contract Termination Fees

It is important to note that if you leave your contract with your property manager early, some companies may charge you an early termination fee. These fees can vary greatly, so take note of this in your contract.At Evernest, we think you should be able to terminate your contract with your property manager if you are dissatisfied. It’s our 100% Happiness Guarantee. 

Factors Affecting Property Management Fees

Many of the above fees were included as ranges because numerous factors can influence the final cost of property management fees. Here are some things to keep in mind:

• Property type: Is your rental property a single-family home, a multi-family apartment complex, or a commercial property? Depending on the type of property you’re renting, your property manager may charge different fees.
• Property size: The size of a property can influence fees because larger properties generally involve higher maintenance costs than smaller properties.
• Property condition: Similarly, a newer or more recently renovated property may require less maintenance 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 it is located in a neighborhood with lower rents.
• Market competition: If there is less competition for property managers in your market, they may be able to charge higher fees.
• The extent of services: Ultimately, the scope of services your property manager provides significantly affects the fees they charge. For instance, rent collection requires far less investment from a property manager than providing 24-hour resident communication, maintenance management, and financial reports.

Hire Evernest As Your Orlando Property Manager

Investing in the Orlando market is an exciting opportunity and a great way to grow your investment portfolio. If you want to ensure you achieve the outcomes you want for your business, hiring the right property manager is key.Evernest is dedicated to providing stress-free property management while also helping to earn a consistent return on investment for our property owners. We've got your back if you want a property manager you can trust. Let us prove it to you! If we can’t find a qualified resident for your Orlando rental property in 21 days or less, your first two months of management are on us.There’s no time like the present to start making your rental business dreams a reality: send us an inquiry to get started today. >>~~~All claims resulting 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 [email protected].