If you’re not spending all of your time at your second home in the Hamptons, many homeowners look to bring on a “care-taker” or property management company to oversee their property while they are away.
When doing so, you may not know what a reasonable price tag for this type of home care service looks like. Because of the lack of pricing transparency among many property management companies, Hamptons homeowners can often end up spending tens of thousands of dollars a year for a home management service, and not getting enough value in return.
With companies like Humming Homes, however, homeowners have access to more cost-effective, efficient solutions on the market than ever before. So in today’s world, what should you be paying for a property management company for your Hamptons home?
While there isn’t a one-size-fits-all price point for property management services, as pricing will depend on your needs as a home-owner, there are certainly rules of thumb that can help you figure out what you should reasonably be paying for a home manager and how you can get the best deal.
Read on to learn more about what you can expect in terms of property management service pricing for your single-family home.
Types of property management fee structures for single-family homes
Generally, you can expect that your property management company will use one of the following three base fee structures:
- Monthly Flat Fees: This is where you pay a fixed fee each month. This fee will include all services in a given package. Humming Homes offers a flat fee pricing model that starts at $250/month.
- Visit-based Fees: The caretaker model is where perhaps a retired cop runs point on your home if there is something that goes wrong or if you need an intro to a service provider or need for them to be at your home if you’re not able to. The challenge is that you actually have no control as to whether or not the person will be available and it can become expensive because it is much more reactive. Payment structures are anywhere from a visit-based fee or quarterly fee dependant on the number of times they came to your home.
- Project-based fees: Some companies will only charge you for the completion of specific projects within a billing period. If you’re looking for a more hands-on, dedicated home management experience, this may not be the best model for you.
On top of these base fees, there are a few types of fees that some companies will charge in certain circumstances:
- Setup fees: Some companies may charge an initial one-time fee in order to set up your new account. This fee is generally a few hundred dollars, and can vary between providers.
- Reserve fund fees: These aren’t so much fees as they are a source of funds for your property manager to use to pay bills, maintenance costs, and more for your home. However, some companies can require these funds up front.
- Past-due invoice fees: If your company doesn’t charge you automatically, they may bill you for any late payments. This could be a flat fee or a percentage of your invoice.
Also, If you choose to rent out your Hamptons home on a medium or long term basis, there are additional fees associated, such as new tenant fees, marketing fees, eviction fees, lease renewal fees, and vacancy fees.
For each company you’re considering, it’s important to get a sense of what services each fee covers — you want to know what you’re paying for!
Humming Homes showcases all fees up front, as well as a full list of what you’re getting with our home management services.
5 Tips When Evaluating A Home Management Partner
1. Cheaper isn’t necessarily better
While you may be tempted to choose the lowest-cost option, it’s important to remember that the cheapest option isn’t necessarily the best option. Your home is one of your most valuable assets, and your first priority when choosing a property management company should be to find someone that you trust fully to care for your home as if it were their own.
In fact, choosing the cheapest option could cost you more money in the long run; they could do low-quality work that will need to be fixed, or there may be hidden expenses that weren’t presented up front.
2. Seek transparency
It’s important to make sure that you get a fully transparent breakdown of a company’s pricing structure — what a company’s base fees are, what additional fees may come up (if any), how frequently you’ll be billed — before signing with them.
Additionally, make sure that all of the language in any contract you sign clearly indicates what you’ll be paying, especially if there are any percent-based fees. If you’re using Humming Homes’ property management services, you’ll never have to worry about any opaque pricing or hidden fees as we provide a totally transparent experience.
3. See if there’s room to negotiate
After you’re presented with a full breakdown of a company’s pricing, go through them and evaluate whether there are any terms or fees you’d like to negotiate.
4. Decide how involved you want your property manage to be and align on expectations
The amount you pay can increase or decrease depending on how hands-on you want your home manager to be.
If you’re just looking for someone to conduct routine home inspections, you’ll spend less than if you’re looking for a worry-free, comprehensive service that includes services like end-to-end vendor management, cleaning, and more.
Before signing up for a service, decide what level of service you’re expecting from a property management company so you’re not paying for more than you need.
5. Enjoy the peace of mind that you will now have knowing that someone is there to take care of everything
While what you pay for a property management service will depend on your needs, you can ensure you’re getting the best price possible by finding a transparent, trusted service.
Humming Homes’ home management service offers fixed home management rates for Hamptons homeowners. All levels of service include a dedicated home management and a modern tech platform to streamline all home management processes.