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Serving Southeast Michigan and Northern Ohio

Flat Rate Property Management: an Investor’s Guide

Partnering with a property-management team means a group of professionals takes care of the details of your real-estate investment, so you don’t have to. Whether you opt for percentage-based or flat-rate property management, a good service should handle

  • Routine maintenance
  • Emergency maintenance
  • Collecting and tracking income 
  • Tracking expenses 
  • Screening and processing applications
  • Signing leases
  • Tenant correspondence
  • And more

But what is the right pay structure for these invaluable services? It’s an important question for every investor to ask.

A Penalty for Quality Property?

Percentage-based property-management services base their fees on the amount of rent the property brings in each month. 

This means that if your unit’s monthly rent is $2000 and your neighbor’s is $1000, you pay 100% more for the exact same set of property services. 

But does that make sense? Does it really require twice as much work to manage a property that collects twice as much rent?

Short answer: absolutely not.

In fact, in many cases, the inverse is actually true. Homes with higher rents typically attract higher-quality tenants and are in better shape, so they require less work. 

But when you charge more in rent, percentage-based management essentially penalizes you for taking excellent care of your property. In short, for real estate investors with high-quality properties, percent management doesn’t make a lot of sense.

The same case can be made for lease-up fees. It is common for property managers to charge 1 month’s rent to lease your property. But why a full month’s rent? Why would that amount scale up, when the work required does not change? For all of the above reasons, 100% lease-up fees don’t make much sense for the property owner.

From a cost standpoint alone, the upside of flat-rate property management is easy to see. But the benefits don’t end there. Flat fees also…

  • are easy to understand
  • give owners more control over their investment budget
  • are consistent—great for those who don’t like surprises
  • mean you can buy a great property in a great area that generates a high monthly rent—and not be penalized with higher fees
  • can be perfect for first-time landlords still learning about the investment process

Why Flat-Rate Property Management?

Of course, it’s easy to see why the percentage approach appeals to property-management firms. So when many others have switched to this model, why has Epic held onto our flat-fee pricing? A few reasons:

For one, the fixed rate is, quite simply, easier. It’s a hassle-free way to do business, which keeps us streamlined and efficient.

Flat-rate property management provides a cut-and-dry approach to pricing both ways: each month, we and you know exactly how much you’ll pay to keep eyes and ears on your property when you’re not around. 

Our numbers are simple and clear: 

  • $99/unit/month
  • $995 lease up

It’s also worth noting the other reason we stick with flat-fee services: 

We actually didn’t get into this business to manage property. We got into the property business to invest, and we mastered property management in the process. 

In other words, Epic was built by a property owner and has evolved to serve property owners. 

So we do what makes sense for investors. Always.

Flat rate property management fees for Michigan property management company

Finding a Flat-Rate Property Management Partner

When you’re in the market for a property-management team, it’s important to ask the right questions. 

Look for a flat-rate property management team that can check the following boxes:

  • Proven experience in the industry
  • Unwavering commitment to customer service
  • Innovative technology to make your life easier
  • Flat, consistent management fees

Turns out, Epic Property Management has it all. Click here to learn more.

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