Having your rental properties managed in Bonita Springs can be rewarding, but understanding property management fees is essential. With 25 years of experience as both a landlord and a property manager in the Bonita Springs, Fort Myers, and Cape Coral areas, I, Michael McVety, president of Red Fortress Property Management, want to clear up some confusion. In this guide, we’ll go over the four primary factors that affect management fees and what you need to look out for when comparing property management services in this area.
Why Local Expertise Matters
When researching property management fees online, it’s crucial to source information locally. Many articles and blogs on this topic are written by people outside Bonita Springs and lack specifics. What works in one part of Florida may not apply here. With property management fees, a lot depends on regional factors, market trends, and local laws. Understanding these nuances will help you choose the right management company and avoid unnecessary fees.
What Affects Property Management Fees in Bonita Springs?
Property management fees vary widely, but they primarily depend on four key factors:
Scope of Service
Type of Management
Fee Structure
Monthly Rental Amount
Let’s dive deeper into each one.
1. Scope of Service
The scope of service is the most significant factor influencing property management fees. When you hire a property management company, you’ll need to decide how much of the process you want them to handle. Options range from partial services, such as tenant screening or lease management (finding you a quality renter), to full-service solutions that include everything from marketing and tenant placement to maintenance, rent collection, timely money distribution and tax documentation.
Some property management companies offer an "A-to-Z" package, which typically covers:
Marketing the property
Tenant screening and leasing
Maintenance coordination
Emergency maintenance (after-hours)
Rent collection and accounting
Year-end tax documentation
This full-service option is often recommended for landlords who prefer a hands-off approach. Be cautious, though—many online sources fail to mention scope of service, leading to misconceptions about cost. The more comprehensive the service, the higher the fee.
2. Type of Management: Annual vs. Short-Term Rentals
In Florida, there are two main types of property management for rentals:
Annual Rentals: Properties rented for seven months or more
Short-Term Rentals: Rentals for less than seven months, which include vacation or seasonal rentals
Each type of rental follows different regulations and requires varying levels of oversight, which impacts the fees charged.
Annual Rentals: Generally, these rentals are more stable with fewer turnovers. Because they require less frequent tenant placement and cleaning services, the management fees for annual rentals are usually lower.
Short-Term Rentals: Short-term rentals are more complex to manage due to higher turnover and the need for cleaning, frequent inspections, and often more intensive marketing. Additionally, these properties are subject to state and local sales tax, which does not apply to annual rentals. Within short-term rentals, there’s a further distinction between vacation rentals (short stays of a week or weekend) and seasonal rentals (stays lasting a few months). Vacation rentals generally come with higher fees due to increased management demands.
In Bonita Springs, this difference in management style and legal requirements means fees for short-term rentals are typically higher than for annual rentals.
3. Types of Fees and Additional Charges
When comparing property management companies, it’s essential to understand their fee structure. While some companies charge only a monthly management fee, others may apply various additional fees. Here are some common types:
Leasing Fee vs. Higher Management Fee: Some companies waive leasing fees but charge a higher ongoing management fee. At Red Fortress Property Management, we do the opposite: we charge a leasing fee when the property is vacant, and a separate management fee while the property is occupied. This approach helps save costs for landlords who bring in a new property for us to manage that already has tenants.
Additional Fees: Some companies might also charge fees for:
Maintenance Coordination: A fee for overseeing repairs
Pet Management Fees: Additional charges for managing pet-friendly rentals
Renewal Fees: Charges for lease renewals
Each company’s approach to management fees can vary, so reviewing the fine print and understanding exactly what you’re paying for is crucial.
4. Monthly Rental Amount and Its Impact on Fees
The rental amount also plays a role in the management fees you’ll pay. Managing a property that rents for $1,500 per month involves similar tasks as a property renting for $3,000 per month. To keep things fair, some property management companies adjust fees based on rental value, charging lower percentages for higher-rent properties. This way, the landlord with a higher rent property doesn’t end up paying disproportionately more for the same level of service.
A common baseline management fee for Bonita Springs is around 8% of collected rent, although this can vary based on the factors discussed.
Typical Management Fee Structures in Bonita Springs
In the Bonita Springs area, here are the typical fee structures you might encounter:
Standard Management Fee: Approximately 8% of collected rent
Leasing Fee: Charged when placing a new tenant, sometimes waived for higher ongoing management fees
Additional Service Fees: Maintenance, pet management, and more, depending on the company’s policies
Every property management company has a unique approach, so take time to review their service agreements and fee structures.
Final Thoughts: Key Takeaways for Bonita Springs Landlords
Understanding property management fees doesn’t have to be overwhelming. Here’s a quick recap of what to consider:
Scope of Service: Are you looking for full-service management, or will you handle certain tasks yourself?
Type of Rental: Short-term rentals usually have higher fees than annual rentals.
Fee Structure: Look out for leasing fees, maintenance charges, and additional costs.
Monthly Rent Amount: Some companies adjust fees based on rental value, which can benefit higher-rent properties.
With this information in mind, you’re better equipped to choose a property management company that meets your needs without surprising fees. At Red Fortress Property Management, we pride ourselves on transparency and a customized approach for each landlord.
For any questions or to get a more detailed breakdown of our services, feel free to reach out to me, Michael McVety, at mike@redfortresspm.com.
