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Frisco Property Management Blog

Flat Fee Property Management vs. Traditional Property Management

Roy Plat - Wednesday, June 18, 2014


Today we are talking about the difference between traditional property management companies and flat fee property management companies. Any property manager you work with will likely follow one structure or the other. 


Traditional management companies charge between 8-12 percent of the monthly rental income. Flat fee property management companies will charge you between $100 and $150 per month. It’s a good idea to analyze which structure is good for the landlord and which one is good for the property management company. 

In the Frisco, Texas area, the average property rents for $2,000 per month. If you work with a traditional property management company, you can expect to pay a fee of around 10 percent, which means you’ll be charged $200 every month. A flat fee management company might charge you $150 per month on the same property. Remember that regardless of how much you charge in rent, there is always going to be one landlord, one tenant and one property. There is really no need to charge additional money every month just because your rent is higher. At Plat Realty, we strongly recommend that you look at the calculations. In the example we provided, you would save $50 every month by using a flat fee property management company in Frisco

Flat Fee Property Management vs. Traditional Property Management
Traditional property managers who charge a percentage of your rental income are charging more money on properties with higher rent, but they are doing the same amount of work. You have the same responsibilities and you are required to use the same resources, regardless of the amount a tenant is paying a landlord. 

If you want more information about flat fee property management and why we think it’s a better deal for landlords, please contact us at Plat Realty, and we’d be happy to share more information with you.

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Plat Realty
8765 Stockard Dr.
Ste.904
Frisco, TX 75034
Phone: 972-704-3787
Fax: 972-704-3708

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CALL PLAT FOR PLATINUM SERVICE: 214.317.1212