- Fixed Monthly Rate – A company agrees to charge you a flat, fixed monthly amount for management services. This could be as low as $95 or as high as $195 depending on what services are included in the fee. Companies offer a flat fee because it is easy for their clients to understand and calculate and can be an effective marketing tool. For cities and counties with a narrow range of rental prices, this plan might work well. But if rents range from a low of $1,000 to a high of $4,000, as they do in Southern California, this plan might not please everyone. Paying $95 for a $1,000 rental might seem steep, but paying the same fee for a $4,000 property might not be enough to make a profit as a company.
- Fixed Monthly Percentage – The company agrees to charge you a fixed percentage of the monthly rents collected. This could be as low as 5% and as high as 10%. Many property management companies offer this pricing because their income increases as rents in increase and it is easy for owners to compare pricing. Once again, the disparity of rents in our market make this pricing also problematic. Paying 6% on a thousand-dollar rental equates to a $60 monthly fee, but for a $4,000 rental, that fee climbs to $240. Is there four times the work on the higher priced rental?
- Hybrid Pricing – For all single-family homes, condominiums and 2-4 unit buildings, regardless of the monthly rent, we charge $75 as a flat monthly fee and 2% of the collected monthly rents. The best way to show the differences with the other pricing models is with a table:
| Monthly Rent | Fixed Rate ($125) | Fixed Percentage (6%) | Hybrid ($75 & 2%) |
| $1,200 | $125 | $72 | $99 |
| $1,500 | $125 | $90 | $105 |
| $1,750 | $125 | $105 | $110 |
| $2,000 | $125 | $120 | $115 |
| $2,500 | $125 | $150 | $125 |
| $3,000 | $125 | $180 | $135 |
| $3,500 | $125 | $210 | $145 |
| $4,000 | $125 | $240 | $155 |