Full Service Property 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 in Salt Lake, Davis, Utah, and Washington Counties 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: $200 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.
8% of each month’s collected rent for single family/condo properties
7% of each month’s collected rent for duplexes, triplexes, and fourplexes
6% of each month’s collected rent for 5-10 units at a single location
5% 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 $80.00. 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 $25 to $40 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 $75 to $125 per hour to manage maintenance.
Our Rate: We only work with screened 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 15% maintenance management fee on the actual cost.
If we facilitate $500.00 of repairs for your property, the total cost to you is $575.00, $500.00 direct to the various contractors we hire and manage, and $75.00 to TierOne.