What Investors Need to Know
Investing in real estate can be a rewarding experience, but managing properties effectively is key to maximizing your returns. Whether you’re managing your own properties or exploring property management options in Calgary, it's important to understand the landscape and know what to look for.
While we specialize in buying and selling real estate, we do not hold a property management license. If you choose to hire a third-party property manager in Alberta, ensure they are properly licensed, as per Alberta’s Real Estate Act.
In this guide, we'll walk through some essential considerations, from fees to service levels, to help you make informed decisions about managing your investments.
Key Property Management Fees to Consider
Property management companies offer a range of services, often tailored to your specific needs. Understanding the types of fees involved will help you compare options and choose what works best for your investment.
- Leasing Fee
Typically, property managers charge $500–$700 to place a tenant. This covers advertising, showing the property, screening applicants, and signing the lease. Learn more about typical fees here.
- Management Fee
The ongoing management fee generally falls between 9% and 12% of the gross rental income. This fee covers day-to-day operations like rent collection, responding to tenant inquiries, and coordinating maintenance. See an example of management fee breakdowns here.
- Lease Renewal Fee
When an existing tenant renews their lease, some managers charge a renewal fee ranging from $100 to $500. This can also apply to situations where you inherit tenants from a property purchase. Check out how renewal fees work here.
- Maintenance Fees
Maintenance is an important aspect of property management. Some companies include basic services in their management fee, while others may charge separately. Be sure to clarify whether you’ll receive invoices directly from the contractor or through the manager. Find out more about maintenance fees here.
What to Keep in Mind When Choosing a Property Manager
Finding the right property manager involves more than just comparing fees. Here are a few factors to consider:
- Hands-On Approach
Smaller teams or independent managers often provide a more personalized, hands-on experience. With fewer clients, they may be able to dedicate more attention to your properties. This can be ideal if you prefer more direct communication and oversight. Explore the differences in management styles here.
- Team Size and Service Level
Larger property management companies offer the benefit of scale and a wide range of services. Many have established systems and resources to efficiently manage multiple properties. Whether you work with a large team or a solo operator, it’s important to choose a manager who aligns with your expectations. Learn more about how team size can impact service levels here.
- Payment Methods
Some managers deposit rent directly into your account and invoice their fees separately, while others deduct fees and disburse the remaining rent. Both approaches work well—choose the one that suits your accounting preferences. Find out more about rent payment methods here.
Property Management for Multi-Family Investments
If you own multi-family properties, such as a 4-plex or larger units, management fees are often negotiated at a lower rate than for single-family homes. Many property managers offer rates in the range of 7%–8% for multi-family units, making it a cost-effective option for larger investments. Check out multi-family management fee rates
here.
Handyman Services as an Alternative
For those who prefer a more active role in managing their properties, hiring a reliable handyman can be a great alternative. By coordinating tenant maintenance requests yourself, you can reduce property management fees while still ensuring that your property is well-maintained.
Here are a few trusted handyman services in Calgary that investors have had positive experiences with:
Important Reminder: Property Management Licensing
Please note, that if you hire a third-party property manager in Alberta, they must hold a valid property management license, as required by
RECA. We specialize in buying and selling real estate and do not provide property management services.
Final Thoughts
Whether you self-manage your properties or hire a licensed property manager, the key is finding a solution that fits your needs and goals. Take the time to explore different management styles and services, and don’t hesitate to speak with several property managers to find the right fit for your portfolio.
In the end, a well-managed property can make all the difference in maintaining tenant satisfaction and preserving the long-term value of your investment.