Property Management Cost and Services in BC: What’s Included?
Managing a property all on your own isn’t exactly the easiest thing to do. Being a landlord in British Columbia brings many legal and financial obligations, and as a landlord you should think of yourself as a business. Whether you are renting out a single condo or an entire apartment building, you are bound by both provincial and regional laws and regulations and should thus act in a professional and business like manner. There’s a lot of factors when it comes to finding the right tenant for your property, and what’s more is it will take up a lot of your time. Hiring a property management company will save you time and headaches when it comes to advertising the rental property, screening tenants, checking references, inspections, repair/maintenance, and disputes.
Included Services:
Advertising and Marketing
- Online advertising on the property management companies’ website and other online advertising (ie. Craigslist)
- Print advertising in local papers (usually an extra change if requested by the owner)
- Market evaluation to determine estimated rent on the property
Full Management
- Fielding questions from and showing the property to potential tenants
- Tenant verification
- Credit check / employment / income verified
- Previous landlord/references verified (where applicable)
- Residential tenancy agreement reviewed with tenant prior to signing
- 24 hour emergency service
- Communication between owners and tenants
Inspections
- Move in and move out inspections for each tenant
- Coordinating tenant move in
- Regular inspections with notice per the residential tenancy act
Financial
- Collection of security deposit
- Collection of rent and deposit direct to owner’s account
- Monthly financial statements mailed to owners with income/expenses, etc.
- Notices delivered per RTA for delinquent tenants and follow up when needed
- Support for non-resident with tax documentation
Repair and Maintenance
- Associated with contractors (and usually preferred rates)
- Arranging trades when required between tenants and contractors
- Keeping owners informed
- Maintain the value of your property
Typical Property Management Cost
The fees for management are usually charged on a percentage basis, taken from the monthly rent. It can range from anywhere between 5-10% typically depending on whether or not you are a resident and the type of property, and there is usually a minimum amount per month that that percentage must exceed. All services are also subject to GST, and tenant placement is a one time cost that is typically half of one month’s rent.
For example, the monthly management fee could be 8% of rent collected, with a minimum of $80 per month for condos and suites, and a minimum of $100 per month for townhouses and detached homes.
In the same scenario however for non-resident owners, the monthly management fee is most likely increased. For example, the monthly management fee would be 10%, with a minimum of $100 per month for condos and suites, and a minimum of $125 per month for townhouses and detached homes. [Compared to 8%, $80, and $100]
The above are the type of things that a property management company will perform for you, as well as the associated cost to those services. If you feel like you cannot take on all of those responsibilities for yourself, or are not familiar enough with the Residential Tenancy Act and the provincial and regional laws associated with being a landlord then hiring a property manager is probably your best option.
If you currently have a tenanted property that you are looking to sell, then read our blog post about everything you need to know about selling your tenanted property by clicking here.
If you’re looking to buy a property and are requiring property management services and looking for the property management cost details, then give us a call at 604-341-9937 or email us at [email protected]. We can point you in the right direction and see who might be a good fit for you based on the area you’re thinking of purchasing in.