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Property management fees in Michigan usually include a monthly management fee, a leasing fee when a new tenant is placed, and a handful of smaller charges such as setup, renewal and late fees, plus the cost of repairs, which owners pay. The way to compare managers is to put every fee side by side, in writing, before you sign.
This guide explains each common fee, what it pays for, and what JMZ Management charges, using only the figures JMZ publishes. Where JMZ does not publish an amount, we say so instead of guessing.
This is the ongoing fee for running the property: collecting rent, handling tenant communication, coordinating maintenance, enforcing the lease, and sending statements. Most companies charge it as a percentage of rent collected, sometimes with a flat minimum.
Ask whether the percentage is taken on rent due or rent actually collected, and whether a minimum applies to lower-rent homes.
A leasing fee pays for the work of filling a vacancy: pricing, photos, listing, showings, screening and the lease itself. At JMZ, the residential leasing fee is the first month's rent, and none applies if a tenant is already in place when JMZ takes over.
For that fee, JMZ prepares an updated rental analysis, markets the home on its own site, more than three dozen rental sites and through agents, screens applicants, and gives you the full packet to approve. JMZ reports an average of 17 days from listing to signed lease when a home is priced to market.
Many companies charge a one-time fee to set up a new owner and property. JMZ has a one-time new client fee, but the amount is not published, so ask for it when you request a proposal.
When a tenant renews, a manager typically reviews the rent, prepares a new lease and gets it signed. At JMZ, the legal team drafts the new lease and a renewal fee applies. The amount is not published, so confirm it up front.
Late fees are paid by tenants, not owners, but who keeps them is a real contract term. According to JMZ, late fees are customarily kept by the manager, and that point is negotiable. Rent paid on time (the 1st to the 7th) is disbursed to owners between the 12th and the 17th.
Repairs are not a management fee, but they are the cost owners most often underestimate. At JMZ, owners pay for most repairs, and any work order over $500 requires owner approval with a contractor estimate. JMZ runs an in-house maintenance company and a 24-hour emergency hotline.
Turnover is a related cost. JMZ puts typical turnover cost at $200 to $500. Our guide to the make-ready process in Metro Detroit explains what that work includes.
Read the fine print for small recurring charges. At JMZ, the bank charges a $1 ACH fee for direct deposit of owner funds. Statements, the AppFolio owner portal, a 1099 and an annual statement are part of the service.
Fees vary by company, so compare written proposals. JMZ Management charges 10% of monthly rent with a $100 monthly minimum, plus a leasing fee equal to the first month's rent.
Some do, but JMZ does not charge a management fee while a home is vacant.
The owner pays for most repairs. At JMZ, work orders over $500 need owner approval with a contractor estimate.
JMZ has a one-time new client fee, and the amount is not published. No leasing fee applies if a tenant is already in place.
At JMZ, late fees are customarily kept by the manager, and that term is negotiable.
The real cost of property management is the full list: monthly fee, leasing fee, setup, renewal, late fee terms, repairs and any optional programs. Get every item in writing and compare it against how fast and how well the manager fills homes. At JMZ Management, your property is our business.
Want a clear, written fee proposal for your rental? Get a free rental analysis or management proposal at jmzmanagement.com/freerentalanalysis or call 248-284-6990.
CONTACT US to learn more about professional property management in Michigan.