Full Service Management
If you enjoy the financial rewards of owning income property but you don’t want to be tied down by property management, this is the program for you. We provide our Owner Clients the opportunity to delegate to us 100% of the tasks, challenges, and headaches of residential property management. Whether you own one income property or an entire portfolio, we’ll provide you with the turn-key solution that will help make your investment property a success.
The pattern among residential property management companies is to charge three different fees for full service residential property management. We have adopted a similar fee structure, but we’ve balanced our prices to make them affordable as possible while maintaining a high level of service for our Owner Clients.
1. The Leasing Fee
The leasing fee is a fee charged each time a new lease is signed for your property. In the case where each lease is a one year lease, you would see this charge at most once per year.
Typical Northern Utah Area Rate: 50-100% of the first month’s rent collected under the lease.
Our Rate: $150 collected from the tenant. $0 from Owner.
If the property is rented under a new one year lease to a tenant paying $1,000 per month, the Leasing Fee owed to TierOne by an Owner would be $0. We have the tenant pay for the costs of leasing and require the tenant pay this amount prior to occupancy. With TierOne Real Estate, you never pay a leasing fee.
2. Management Fee
The Management Fee is charged monthly and is paid to TierOne out of rents actually collected from the tenant. You would see this charge once per month.
Typical Northern Utah Area Rate: 8%-12% of each month’s collected rent under the lease for full service management.
9% of each month’s collected rent for single family/condo properties
8% of each month’s collected rent for duplexes, triplexes, and fourplexes
7% of each month’s collected rent for 5-10 units at a single location
6% of each month’s collected rent for 11 units and up at a single location
If the property is a single-family home rented under a lease to a tenant paying $1,000 per month, the Management Fee owed to TierOne would be $90.00. We would take this amount out of each month’s rent actually collected from the tenant. You would see this fee each month.
3. Maintenance Fee
The Maintenance Fee is charged only when maintenance is actually done on your property.
Typical Northern Utah Area Rate: Many management companies have in-house staff that they pay $15 to $30 per hour. They will then commonly bill out this team at $60 to $80 per hour plus materials and a materials markup. Other companies work with a mix of in-house staff and outside contractors and then they bill out administrative/management time at $50 to $75 per hour to manage maintenance.
We have elected to work with 3rd party licensed and bonded contractors. This ensures that we ALWAYS have enough capacity to meet the needs of our Owner Clients, and we NEVER have to endure poor performance and quality. We have our choice of qualified contractors–and our contractors know this. We demand and receive good, competitive pricing from highly qualified contractors, and then we bill our Owner Clients actual cost plus an average 10% maintenance management fee on the actual cost.
If we facilitate $500.00 of repairs for your property, the total cost to you is $550.00, $500.00 direct to the various contractors we hire and manage, and $50.00 to TierOne.
À La Carte Services
Leasing Service*: $300
Our services also allow you to manage your property on your own, but not alone. Not all property owners need complete management services – we realize that. If you have the time and interest to do some of the management of your property yourself, you may find that selecting services from our À la carte menu is the way to go. You may elect to take advantage of any number of these services that are designed to make management of your home simple and efficient:
a. TierOne will provide a rental price estimate and advise the owner as to any improvements necessary to lease the property at the highest rate possible in a timely manner
b. Advertise the property on TierOne’s website and syndicate to over 25 other rental websites
c. Coordinate property viewings (through our showing service only)
d. Review applications, perform background and credit screening of applicants, verify employment, interview past landlords, interview, and select the most highly qualified applicant
Lease Agreement, Pet, Pest, and Smoking Addendum*: $300
a. Prepare lease agreement
b. Provide applicant required federal, state, and county disclosures
c. Collect first month’s rent and security deposit from tenant, provide tenant with keys, and a move-in inspection form
Both the above combined Leasing Service with Lease Agreement and Addendum as a package*: $550
Background and Credit Report Service: $95
a. Background and Credit Report
b. Eviction Report
c. Employment Report
d. Past Rental History Report
e. Co-Applicant report fee is an additional $50 per
Bi-annual inspection: $100/inspection
a. Coordination with all vendors and tenants
b. Inspect ALL rooms, halls, and spaces for damage beyond normal wear and tear
c. Pictures of troubled areas
d. Yard/outdoor areas surveyed for cleanliness and pet sign
e. Inspection of roof, shingles, and rain gutters for obvious damage
f. Replace furnace filters
g. Clean refrigerator coil
h. Check all smoke detectors and CO2 detectors are in working order
i. Seasonal items – hoses removed, central air breakers tripped, and sprinkler timers adjusted
Payment Processing and Accounting Services*: $65/month/tenant
a. Tenant and owner accounting portal showing a full accounting of rents, utilities, fees, etc.
b. Collect and hold tenant/owner’s security deposits in accordance with Utah law
c. Electronic collection of rents (EFT)
d. Electronic disbursement of Owners funds (EFT)
e. Monthly, quarterly, yearly, and year to date statements
f. End of year statements for tax preparer
g. Goal planning
a. Emergency Repair and Rehab Contracting: 20% of service provided
b. Lock Change Service: $65/hour + parts
c. House Cleaning and Trash-out Service: by Bid
d. Carpet Cleaning: by Bid
e. Lawncare and Snow Removal: by Bid
f. Buyer and Seller/Legal representation: $95/hr, 1 hr minimum
g. Landlord Lifeline Call: $95/hr, 1 hr minimum
* requires a property management contract