Property Management – West Hills

Gary Knippa, owner of Knippa Properties in Austin, TX says that “Property management typically runs 8 to 10 percent of the gross monthly rent, and there is a leasing fee that typically runs 80 to100 percent of one month’s rent to get the new tenant in a property.” This 8-10 percent covers all of the services that the property manager will be providing (advertising, screening tenants, filing evictions, procuring vendors and contractors, enforcing lease agreements, etc.) Every month, the monthly fee will be deducted from the rent revenue that you have received that month. The property management company will pay you the difference, usually no later than the 15th of the month.

Along with your rent check(s) you will receive an itemized report stating all revenue, deductions, and expenditures incurred during that month. If repairs were done on any units during the month, the repair costs will be deducted from your allotment as well and you will typically receive a copy of the invoice showing the actual work that was done and the costs of that work. At the end of the year, the property management company will also provide to you an end of the year statement and 1099 form to use for your tax purposes.