Income and expenses: What property managers need to know


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Notes

Types of income:

Income source What is it? Who pays it
Management fees A standardized fee for performing normal property management duties—usually a percentage of the rent (or a flat fee for associations). Rental owner or association
Maintenance markups A surcharge for acting as a general contractor on maintenance items—usually a percentage of the total property maintenance bill. Rental owner or association
Finder’s fees A fee charged for finding a new tenant for a vacant unit. This fee is usually paid by the rental owner in weaker rental markets, and paid by the applicant in stronger ones. Applicant or rental owner
Rental application fees A fee charged to cover the costs of tenant verification . Applicant
Lockout fees or “re-key” fees A penalty fee if the tenant locks themselves out or loses a key. This is especially common in student housing. Resident
Out-of-lease surcharge A fee designed to encourage a tenant to sign a long-term lease. Resident
Non-sufficient funds (NSF) fees A penalty fee meant to deter fraudulent payments, and to cover associated bank fees. Resident
Late fees A penalty if rent, association fees, or some other assessed charge isn’t paid on time. Resident

Types of expenses:

Expense What is it?
Payroll and contractor fees Paying your employees or contractors
Rent Rent for your office space
Supplies Office and maintenance supplies
Utilities Water, electric, and HVAC bills
Bookkeeping Many property managers work with an accountant, especially at tax time
Service fees Buildium property management software , tenant screenings
Membership fees Industry organizations like NARPM; Chamber of Commerce