Need Property Management Referral in Spring, TX

[Darla S.]

I own several single family rental homes in Spring, TX, and I think my current property manager is ripping me off.  The PM  charges a 10% monthly management fee, plus a $350 annual lease renewal fee, plus 1 full months of rent when placing a new tenant.  The PM recently had me repaint the interior of one of my properties, a 1500 sq ft house and told me the cost was $3,500.  I think I may have been overcharged.  In addition, every time she places a new tenant for me, she will list the property at market rent, but then call me and tell me the prospective tenant is offering $50 - $100 less per month to rent my house. She does this EVERY single time since I've been working with her (since 2007).

Is this standard practice in Spring/Houston TX?  Does anyone have a referral to an excellent, reliable property management company that is more affordable than the one I am currently with?

Thanks for your help!

[Michael Delpier]

Not normal, but even if it were this should not be accepted.

Placement from a real estate is typically 1 month rent devided between the renters agent and the owners agent. But property managers charge between 1/2 month and a full months rent. If they do charge a full months rent typically their other fees are lower. I don't like this route because it puts the insintive on placing tenants and not retaining tenants.

Management fees range from flat fees around $85/mo and 10%. But typically it is around 7-8 percent of the months rent. It depends on how many rentals they are managing for you, and the monthly rent. If your rent is $1k or under, expect the full 10%. I have gotten low as 5% from a very professional management company, but my rents were $2k each and they had several of my properties.

My manager does not charge me fees when they go to the property, but their maintainance contractors do if no work was performed. Otherwise the visit fee is rolled into the cost of the repair.

A manager who charges you a fee to visit your rental should be fired. Period! I know these are strong words, but this is their job and why they are charging you a monthly fee. They should be doing a walk through at least twice a year. If they are not, get a new management company.

For Spring, Texas specifically, here is what I would think is normal and acceptable.

- Placement fee around 3/4 months rent. This includes a full background check and guarantee for 1year.

- About 7.5% to 8% of the monthly rent for management fee.

- No markups on any maintainance, and the option to use the vender of your choice.

- walk throughs at least twice a year with a report.

- awesome communication with both you and your tenant.

- owners statements every month, and a end of year statement.

- both rental comps and sales comps based on actual sales not more than 3 months old

Spring has rents for SFR's normally between $1350/mo and $1900/mo

I would budget based on 12 month leases renewing 2-3 times. 

The "make ready" fee differs. But is minimal and is many times is the responsibility of the tenant. Some property managers require a receipt from a cleaning company to release the security deposit. But this is not normal.

Currently I pay about $1.10/sf of floor space for repaint.

Hope this helps.

For specific recommendations in spring, TX, I have not found a manager I am perfectly happy with. (Some good ones but not perfect) But Google " property management, spring Tx" and you will at least get to see what normal fees look like.