We hosted a fantastic webinar this year featuring Robert Locke on the topic of increasing your revenue in order to run a more successful and profitable property management business. In the webinar we learned that the single most important event that starts your revenue stream pumping out money is the “move-in.”
Robert shared a valuable document with webinar attendees that outlined 100 things you should be charging for as a property management professional. For example, when you sign up a tenant, you can charge for the application fee and there may be a co-signer fee. You then have to set up utilities and if they want to move in on the weekend or if they want to pick up the key late at night after hours, well, you can charge for that.
Once the resident has been moved in, there are a number of events that you can charge for. For example, if the resident wants to pay rent with a personal check and not automatically online using their credit card; you can charge a personal check fee. Try and encourage prospective renters to use the method of payment that works best for your business model and remember that your time is valuable. Robert Locke shared how he was able to run an increasingly profitable business by charging for individual services and this helps outline just how much work the property manager is putting into the business.
While managing the resident, the following charges may apply:
- Roommate Change Out Fee
- Reinstatement Fee
- Renewal Fee
- Reinstate Renter’s Insurance
- Unauthorized Pet Fee
- Re-key / Lockout Fee
- After Hours Maintenance Fee
As a property manager you can outsource many of these tasks and get paid for them. You want to keep your management agreement simple and concise and you don’t need to include all of the information in this same agreement. Disclosing all of your fees is very important so you may want to keep all of the information in an “owner handbook” or in your house keeping documents. You can also decide to disclose the fees as the events happen like in a letter stating; “If you experience a foreclosure, then there will be an administration fee.” When you notify people of a potential fee, they tend to be understanding.