Who Should Pay Management Fees During Vacancy?
Today, I want to address the age-old question that often arises when dealing with property management companies: Should you, as a property owner, pay management fees during vacancy?
This topic isn't just a common concern; it's critical to understanding what you're getting into with your property management company. Many times, owners come onboard without asking this question, perhaps assuming it's standard knowledge or simply forgetting to address it. So, let's unpack this today and shed some light on the matter.
Understanding the Value of Management Fees During Vacancy
At the time of this recording in 2025, Emerson charges management fees during vacancy—yes, the same fees as during tenancy. Now, you might ask, "Cameron, what are you doing during a vacancy?" It's a fair concern. If a property management company does nothing during vacancy, they shouldn't charge a fee. So, what do you get for your fees during those vacant times?
Well, we routinely walk your property every two weeks. We ensure there are no squatters, confirm all doors and windows are locked and secure, and manage your home's climate to prevent issues like mold. In Texas, that means setting the heat to 60 or 65 degrees in the winter and ensuring the AC is on during those blistering summers.
We also ensure the agent who showed your house didn’t leave any surprises, like using the bathroom when the water was shut off. By turning off water during vacancies, we prevent potential leaks from going undetected. But in the unlikely event that it happens, we can catch it thanks to these inspections.
Why We Charge Fees
Think about this: no matter your monthly management fee—let's say it's $100—I'm visiting your property for the equivalent of $50 per visit. I don't know about y'all, but that's not easy money, especially when you factor in logistics across the vast distance of the Houston area. So these fees help cover the cost of our service and allow us to maintain the level of care needed for your property.
Agents might be great at negotiating or creating engaging property descriptions, but they don't focus on property details like water shutoff valves. It's not their job, which is why we take responsibility for it. Ensuring your property's safety and condition is our duty to you.
We even had an owner leave because another management company claimed they did all this for free. Mathematically, it doesn't add up. Providing the same level of service without charging somewhere else isn’t feasible. For us, it comes down to providing full transparency and ensuring that the property's needs are met for a fair price.
What This Means for You
When you're shopping for a property management company, ask these questions and understand what you're getting. Even if you're not familiar with specifics like shutting off water in the winter, the consequences of not doing it can be severe, leading to major losses from unchecked burst pipes or other issues.
Do you want to risk damage for the sake of minor fee savings? We offer a 30-day lease guarantee, detailed on our website, which shows our commitment to getting your property rented quickly, while still managing risks during vacancies.
