That is often the first question a potential client will ask when I answer the phone. It is a fair question and of course an investor needs to know how my services will impact his bottom line.
My simplest response is I offer a range of services and prices depending on your needs. But there’s more that an investor should be asking.
A competitor may be charging less but ask:
- Are there any additional fees that are not included in the management fee?
- Do you have a markup on maintenance invoices?
- Do you have your own maintenance company?
- Do you charge a fee during vacancies?
- Do you charge a leasing fee?
- Do you charge a lease renewal fee?
- Do you charge a fee for inspections?
- Do you use unlicensed vendors and if so who pays the worker’s comp?
We all need to earn our living some way and a low-priced provider may have many potential revenue streams other than the management fee.
If a client is looking for the cheapest in the Pasadena, Eagle Rock, Glendale and Burbank areas I won’t be the best fit. But if a client wants a management company with experience, professional designations, clear communication and transparent financial reporting then I say let’s talk.