Management fee for #TorontoRentals include: (1) a monthly management fee plus (2) out of pocket expenses for maintenance and repairs
— Landlord Relief (@LandlordRelief) December 16, 2014
Your expenses – management fees and expenses
The General Principle is: You will have all the expenses you always had plus a fee to the manager to separate you from the work and problems.
As a landlord you are interested in the total fees to have your rental property managed – meaning that you will have no contact with the tenant and that you will receive regular income.
Landlordrelief.ca will charge you management fees. In addition, you will be responsible for to pay for expenses necessary to manage your property. Each of these charges is described.
1. Management Fees paid to LandRelief.ca
Our most common management fee structure is a monthly fee that is equal to the monthly rent divided by 12 which is 8.33%.
Our fees will be based on an agreed upon percentage of the gross rent. In general the fee will range from 7% to 11% depending on a number of factors.
These factors include:
– the type of property: condominium, duplex, triplex, single family
– the gross rent ( the higher the rent the lower the percentage)
– the number of properties we manage for you
2. Expenses to manage your property while your property is rented
As you know, owning property is not “hassle free”. You can have a number of problems. Some of the more common problems include: plumbing, electrical, roofing, appliance repairs. Some of the less common problems (particularly in Toronto) include raccoons. Whatever the problem we will solve it for you quickly, efficiently and at fair price.
3. Expenses to manage your property while your property is vacant
Our first objective is to minimize vacancies. When a vacancy happens you can expect two kinds of expenses:
First, the “out of pocket” cost of finding a suitable tenant. These costs include: advertising, showing the property, credit checks, etc. LandlordRelief.ca charges an additional 1/2 month rent for the work of securing the new tenant.
Second, the cost of painting, cleaning and maintenance that would normally be done only when there is a vacancy. (Once again, tenant turnover is your biggest cost. Our objective is to minimize it.)
In most cases, fees (whether management fees or reimbursement for expenses will be taken out of the rent and the balance deposited into your account at a Canadian bank).
My family has a 16 unit apartment building in Mississauga that we are looking to have managed. I don’t live in the city anymore and my aunt is getting older and finding it more and more difficult to deal with. Is this a service you can provide? We are looking for a total management package that would minimize our involvement. Please feel free to email about costs and available options.
Taras (Terry) Pater