Today Housing industry is one of the most competitive industries. There are variety of homeowners who are looking for professional property management companies to overlook their homes. And there are even more property managers who offer diverse home services. Depending on area, property management services may vary. Normally, Property Managers assist with leasing (tenant placement), marketing, rent collection, lease administration, residents’ assistance, and property maintenance and inspections. Also, it is common to see different packages offered by the property managers. Our research pointed that eviction property inspections, bill payments, tenant placement, and eviction protection plans are what differ the management packages. When homeowner or investor is looking to hire a Property Manager, it is important to understand the differences.
Below is the comparison of two property management packages in terms of the eviction process and fees. The example provided describes property management packages of Mila Realty (November 2020). Mainly the homeowners choose between Gold or Platinum management packages. According to description, Platinum package comes with free lease renewals, free tangible tax returns, free Landlord License, a 14 days lease guarantee, and eviction protection. Consequently, the Platinum package is more expensive. There is also offered an Eviction Protection Plan, which can be added to Gold (seven percent) management package. Let’s see together what are the main differences and how to understand these property management numbers.
- Gold Package (seven percent) + Ten dollars paid monthly for eviction protection = Gold Package (Nine percent package). No difference in quality!
- How the Gold Package with added eviction protection plan/Gold Package differ from Gold Package without an eviction protection fee?
Regardless of the package, Mila Realty will do an equally great job on tenant placement. They will do the same advanced marketing and extensive background check. They will use the same lease agreement form, which is approved by the Supreme Court. If at some point, there are any difficulties with the resident or lease administration, Mila Realty will try all possible measures to bring both the relationships and the lease back to good standing. However, if at some point, eviction is unavoidable in order to take a possession of the property, Mila Realty property management office will take the following steps:
- The Property Manager will hire an attorney, who will file an eviction.
- They will pay the attorney for his/her fees and filing fees. In general, in Orlando eviction cost is $800.
- Homeowners will see an eviction fee charge in the statement.
- When the tenant moves out/evicted, the tenant’s security deposit will be applied towards unpaid rent, repairs, eviction fees, and other fees.
- There is a possibility that security deposit will not be enough to cover the balance owned by the tenant. For example, deposit only covers the unpaid rent and repairs.
- Eviction cost remains unpaid by the tenant and becomes liability of the owner.
- Since security deposit covered the rent, the owner now has an income. And uncovered by security deposit eviction cost will be deducted from owner’s income as an owner expense. A) This is an example of Gold Package without 10$ monthly eviction protection fee. B) Owners who added a property protection to their Gold Package will receive a credit from Mila Realty equal to the eviction cost. So, the owner receives rent and repair funds covered by the security deposit in full without any deductions. Same applies to Platinum package.
Indeed, homeowners may seek reimbursement from the tenant for unpaid balance by initiating the legal actions. However, this is a costly and long journey with no promises at the end. Therefore, having an eviction protection plan may not be a bad idea after all.
Happy Property Management