Managing a rental property or strata building is no easy task. It involves a unique set of skills, takes a lot of commitment, and requires real estate, rental, and strata industry expertise, knowledge of building maintenance and systems, and familiarity with finances and budgeting. Property management is beneficial for rental properties and strata buildings. A good Property Manager can help free up time and involvement, minimize legal liability and issues, improve financials, assist with property maintenance and emergency repairs, and ensure compliance of laws and regulations within the Strata Property Act and Residential Tenancy Act. It is their full-time job to ensure your property is maintained to the highest standard and running smoothly with few hiccups.
The Cost of Hiring A Property Management Company
Property Managers are hired by landlords and Strata Corporations to manage the day-to-day activities that come with overseeing a strata or rental property. Property size, the type of management needed, property age, and amount of involvement are factors that affect the monthly cost of management. Most property management fees are billed on a monthly basis.
Strata Management
Strata management fees are agreed upon in a service agreement between a strata management company and a Strata Corporation. These fees are included in Strata Corporation’s annual operating budget, and are funded by monthly strata fees. The Real Estate Services Rules (governed by the BCFSA) require strata management companies to have written service agreements that outline the services included in their monthly fee, as well as any additional amounts/fees for services that are not included. Before taking effect, management fee changes must be in writing and agreed upon by both parties.
Rental Management
Rental management fees apply to an individual property. There are a variety of different pricing methods for rental management services.
Flat Fee – Some Rental Property Managers will charge a flat fee per month based on the size of the property and the type of services needed.
Percentage of Rent – The most common method for rental management companies to charge in the industry. This method involves charging a percentage of the monthly rent for management services. There may be additional fees for tenant placement, credit checks, inspections, renovations and major repairs, and other miscellaneous expenses.
Rent Due vs. Rent Collected – Some rental management companies will charge a percentage on “rent due” or “rent collected”. It is key to read your contract carefully, as this can be a grey area. Rental management companies that charge a percentage on “rent collected” only get paid when rent is collected. If the property is vacant, no payment is necessary. With “rent due”, rental management companies get paid even when there is no renter.
At CENTURY 21 Prudential Estates (RMD) Ltd., our property management division specializes in residential strata management and residential rental management. We offer a wide range of property management services for properties of all sizes and varying needs. Let our outstanding reputation and years of experience guide your rental or strata property to success. Get in touch, and have our team provide you with a proposal today!
