If you enjoy the financial rewards of owning income property but you don’t want to be tied down by property management, this is the program for you. The Management Success Formula™ is Grid’s proprietary program that allows our Investor clients to delegate to us 100% of the tasks, challenges, and headaches of property management.
Whether you own one income property or an entire portfolio, our Management Success Formula™ program will provide you with the turn-key solution that will help make your investment property a success.
Grid has a very simple pricing structure for our full-service property management. We have three fees….a leasing fee, a monthly management fee, and a maintenance management fee. We charge no other fees.
The Leasing Fee is a fee charged each time a new lease is signed for your property. In the case where each lease is a one year lease, you would see this charge at most once per year.
5% of the value of the lease
If the property is rented under a new one-year lease to a Tenant paying $2,000 per month in Base Rent, the Leasing Fee owed to Grid would be 12 months x $2000 * 5% = $1200. You would not see this fee again until a new lease is signed with a new Tenant or when the Tenant reaches the end of their lease and signs a new lease.
The Management Fee is charged monthly and is paid to Grid out of rents actually collected from the Tenant. You would see this charge once per month.
5% of Collected Rents.
If the property has gross rents of $10,000 per month in Base Rent, the Management Fee owed to Grid would be $10,000 * 5% = $500.00. We would take this amount out of each month’s rent actually collected from the Tenants. You would see this fee each month.
The Maintenance Fee is charged only when Maintenance or Capital Expenditures are actually done on your property.
Many management companies have in-house staff that they pay $15 to $20 per hour. They will then commonly bill out this team at $60 to $100 per hour plus materials and a materials markup. Other companies work with a mix of in-house staff and outside contractors and then they bill out administrative/management time at $50 to $65 per hour to manage maintenance.
We have elected to work exclusively with 3rd party licensed and bonded contractors. This ensures that we ALWAYS have enough capacity to meet the needs of our Investor Clients, and we NEVER have to endure poor performance and quality – we have our choice of qualified contractors, and our contractors know this.
We demand and receive good, competitive pricing from highly qualified contractors, and then we bill our Investor Clients actual cost plus a 10% maintenance management fee on the actual cost.
If we facilitate $200.00 of repairs for your property, the total cost to you is $220.00, $200.00 direct to the contractor we hired and managed, and $20.00 to Grid.