Property managers take care of a property for investors who don’t live nearby or don’t want to manage the property personally. They can collect rent, handle maintenance requests, find qualified residents, and more. They also enable you to buy real estate outside where you currently live, which means you can invest in areas with high growth potential. One such market is St. Louis, MO, where home prices were up 9.5% from last year. As of June 2022, the median home price was $230K.
The cost of hiring a property manager largely depends on where your property is located, alongside factors such as the property type and the number of services offered.
To help you understand what to expect in terms of leasing and property management fees in St. Louis, we put together this article comparing six property management companies in the area and the various fees they charge.
Leasing Fees for St. Louis Landlords
You will first encounter a leasing fee when working with a property manager. A leasing fee usually covers the work of finding a resident for the rental property. This could include any of the following:
Marketing the property
Holding showings
Screening applicants
Preparing the lease agreement
You might use a property manager only during leasing, opting to handle ongoing management once a resident is placed.
Leasing fees can be fixed, but they are usually calculated as a percentage of the first month’s rent. The average leasing fee in the St. Louis area is generally 50-100% of a month’s rent.
Some companies will offer a lower leasing fee with a more premium membership tier, including Evernest and the Kunkel Wittenauer Group.
Fixed vs. Percentage-based Property Management Fees in St. Louis
Most property managers will charge a fee to manage your rental on an ongoing basis. In this case, the cost will depend on the services included — the more hands-on you want your property manager to be, the higher the fee.
A property management fee will either be charged as a flat monthly rate or as a percentage of your monthly rent. These fees vary based on rental rate, property type, and service scope.
In St. Louis, flat fees generally run between $100 and $ 180, whereas percentage fees range from 8% to 10%.
epairs and Maintenance Fees
Your property manager may also take care of maintenance and general property upkeep. This may be less expensive than handling these concerns on your own because most property managers will have partnerships with local vendors and contractors that allow them to negotiate a lower price.
Most property managers will require you to keep a minimum reserve repair fund on hand to cover the cost of any specific repairs. Your property management agreement will specify the minimum amount you must keep in your reserve repair fund.
Leasing Renewal Fees
When an existing resident wishes to renew their lease, your property manager will charge a lease renewal fee to cover the costs of negotiating and completing lease renewal documents. This fee can also be charged as a flat fee or as a percentage of rent. Some property managers may also waive lease renewal fees.
In St. Louis, lease renewal fees generally range from $100-250.
Vacant Unit Fees
Your property manager may charge a specific vacant unit fee if your unit is left vacant. They may also charge their regular property management fee instead of a specific vacancy fee.
At Evernest, vacant units are subject to our monthly management fee. That covers the cost of monthly inspections while the vacant property, providing you with peace of mind.
Eviction Fees
While it’s not common, unfortunately, you may inevitably find yourself in a situation where you’ll need to evict a resident. A property manager can handle evictions for you. Sometimes evictions are included in the monthly management fee. Other times, these will be charged as a separate fee.
At Evernest, eviction protection is included in our Platinum pricing plan, but 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
A property manager will typically handle all routine inspections for you. Inspections are essential for ensuring that your rental is well-maintained by your resident and for identifying problems before they become costly repairs.
In St. Louis, inspections are generally included with the leasing or monthly property management fees, whereas additional inspections are available for a flat fee.
Contract Termination Fees
Some companies will charge you an early termination fee if you terminate your contract with your property manager early. These fees can vary greatly, so take note of this in your contract before you sign.
At Evernest, we think you should be able to stop working with us 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 several factors can influence the final cost of property management fees. Here are some examples of factors that can affect your costs:
Property type: Depending on whether your rental property is a single family home, a multi-family apartment complex, or a commercial property, the fees charged by your property manager will vary.
Property size: This can also influence fees because larger properties may require more maintenance than smaller ones.
Property condition: A newer or renovated property may require less maintenance than an older property.
Neighborhood rating: If your rental property is located in a neighborhood with 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 provided by your property manager has a significant effect on 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 St. Louis Property Manager
If you’re ready to start investing in the St. Louis market, it’s time to find a property manager to help you build your business and achieve the desired outcomes. Evernest is dedicated to providing hassle-free property management. It’s our mission to assist in giving our property owners a consistent return on investment!
Let us prove it to you. We guarantee that we will find a qualified resident for your St. Louis rental property in 21 days or less, or your first two months of management with us are free.
Ready to get started? Send us an inquiry today.
Source: This content was originally written for Evernest and published at Evernest.co.
