Cost Breakdown: Additional Expenses Beyond Management Fees

Beyond the core property management fees, additional expenses typically include maintenance and repairs, utilities, property insurance, property taxes, marketing and advertising, legal and professional fees, resident screening, landscaping and grounds maintenance, emergency maintenance, and sometimes HOA or condo fees.

More specifically, the cost breakdown of additional expenses beyond management fees often involves:

• Maintenance and Repairs: Regular upkeep and unexpected repairs such as plumbing, HVAC, electrical systems, and emergency fixes.
• Utilities: Water, sewer, garbage collection, and sometimes electricity or gas depending on lease terms.
• Property Insurance: Premiums for fire, liability, and other coverage protecting the property and owner.
• Property Taxes: Local government taxes based on assessed property value.
• Marketing and Advertising: Costs for promoting vacancies, including listing fees, photography, and social media ads.
• Legal and Professional Fees: Expenses for lease drafting, eviction proceedings, dispute resolution, and accounting or appraisal services.
• Resident Screening: Fees for credit checks, background verification, and references.
• Landscaping and Grounds Maintenance: Lawn care, tree trimming, snow removal, and other outdoor upkeep.
• Emergency Maintenance: After-hours urgent repairs like burst pipes or electrical outages.
• Overhead and Administrative Costs: Office rent, utilities, supplies, payroll, contractor fees, insurance, licensing, software subscriptions, and membership dues for professional bodies.
• Leasing or Tenant Placement Fees: Separate charges for finding new tenants, often a flat fee or a percentage of the first month’s rent.
• Renewal Fees: Charges for lease or management agreement renewals.
• Eviction and Legal Fees: Additional costs if eviction or legal action is required.

These expenses vary by property type, size, and management company policies, so it is essential to review contracts carefully to understand all potential costs.