Blog Post

Indianapolis Property Management Fees Explained

Jul 28, 2015
Today’s blog is about Indianapolis area property management companies and the fees they charge. We want to help you understand what management companies charge their clients, and how they do it.

Set Up Fee
One of the first things you may run into with property management companies is a set up fee. This is a fee that a company may charge for each property you bring them to manage. They will tell you that this money covers the staffing required to put your property into their systems and to begin their marketing work on your behalf. We don’t charge this fee at Indiana Property Management Group, but it is very common in the industry.

Lease Up and Management Fees
Lease up fees are also common. When we place a tenant into your property, management companies generally charge a flat lease up fee or a percentage of that first month’s rent. After that, every management company charges a monthly fee. The monthly management fee also might be a flat fee, but it’s usually a percentage of the rent that’s collected for your property every month. If no rent is collected for your rental, no fee is due to the management company.

Repair Fees
Some companies will charge repair fees. They might call them something else, but it’s basically an extra charge when repairs are necessary. For example, if a dishwasher goes out and needs to be replaced, that dishwasher might cost $400. In addition to paying the price of the dishwasher, a management company might add 10 percent, or in this case $40 for coordinating that repair. We don’t do that because we see it as part of our job, but it’s something you may run into it.

Fee Collection
Fees are generally collected from the rent we receive from your tenant. Rent comes in from the tenant, and then we deduct out any expenses or repairs and then the management fee. The balance of the rent that comes in is sent to you by check or electronic transfer.

At IPMG, we try very hard to keep the fees inexpensive and simple to understand. We know our property owners like costs that are predictable. We also want you to maximize your investment so that you can do more real estate investing.


If you want more information, check out an earlier blog we posted called “What Does an Indianapolis Area Property Management Company Actually Do?” This can explain the services you receive in exchange for your fee. If you have any questions, contact us at Indiana Property Management Group.

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Indianapolis Landlord Registration and Responsibilities – Self Manager Advice

25 Aug, 2015
We are talking today about the new Indianapolis Landlord Registration ordinance that went into effect January 1, 2015. Indianapolis has followed the lead of several municipalities around the country and is now requiring property owners and investors to register in their system each year. The cost is $5, and that’s $5 per property owner. So if you have four properties you need to register and you do them all at the same time, it’s going to cost you $5. If you go in and register them each individually, it will cost you $20 or $5 per registration. There are two ways to register your property. You can go down to the Code Enforcement office. They have a kiosk set up in their lobby and you can register there. The other option is to register online. It takes about five minutes per property and it’s not very difficult. The link for that website is here: https://permitsandcases.indy.gov/citizenAccess/ When you go to register, make sure you have a parcel number for each of the properties you are going to register as well as the number of units on each parcel. Then, they will want the contact information for the individual responsible for each property.

How to Avoid Tenant Damage – Indianapolis Preventative Maintenance Tips

18 Aug, 2015
In today’s blog, we’re talking about three things you can do to help minimize the damage to your Indianapolis area rental property. Setting Expectations The first and most important thing to do is to set clear expectations for your tenant up front. If you are a coach or a parent, you’ve probably noticed that kids will often meet your expectations, whether they are high or low. When they know what you want, they’re going to deliver. Tenants are usually the same way, so it’s important to let them know that you have high expectations for how they will care for and treat the property while they’re living there. Documentation Documentation is always important. When the tenants move in, let them see you document every inch of that property. We recommend that you take at least 100 photos at the move in. Shoot a video as well that details the condition of the home’s interior and exterior. Do this with the tenant alongside you. Then, your tenants will see how important it is to you. Have a detailed checklist as well. Ours is six pages long, and we walk through the unit with the tenant and go over it, line by line. Have the tenant sign the checklist at the end so the condition is documented and everyone agrees how the property looks. Inspections Periodic inspections are important in protecting the condition of your home. You might want to go in there twice a year or quarterly. When you get inside the property, you can see how things are doing. Sometimes you can catch a big problem while it’s still small, and that will save you a lot of maintenance money. If you have a contractor you trust and have a good relationship with, have them observe things when they’re there to take care of repairs or issues. Tenants are always on their best behavior when a landlord visits, but when a vendor comes over, they can usually see how things really are.

3 Signs It’s Time to Serve a Tenant Eviction Notice – Indianapolis Landlord Advice

11 Aug, 2015
On our blog today, we are taking a few moments to talk about three specific events that tell you it’s time for an eviction. Hopefully, you will have a better understanding of when it’s time to get rid of your problem tenants. Payment Issues It’s pretty clear that you need to evict a tenant who is not paying rent or is slow to pay every month. Landlords often ask us how long they should wait to get the process started. It’s critical that you start right away. Don’t wait 30 days to pursue an eviction. If rent is due on the fifth of the month and it’s not paid on the sixth, send out a letter letting the tenants know that the lack of payment won’t be tolerated. If you do get to an eviction with the tenant in this situation, it’s important that you understand whether you should be taking any money from them or not. If they want to pay half this week and half next week, it’s not a good idea to immediately agree. This can mess up your eviction process and you should only accept partial payments if the tenant really wants to make the situation whole. Ask yourself if this is a tenant you want to continue doing business with, or if it is better to cut ties. Breaking Lease Terms Another good reason to evict is when your tenants violate the lease. Maybe a tenant has moved in an additional person or a pet that was unexpected and not approved. Again, you must take action immediately. Let them know you are aware of the situation and that they need to remedy it, or action will be taken. It’s important to be consistent. If you have a couple of units or multiple properties, be consistent across the board or you’re opening yourself up to liability. Maintenance and Behavior Issues This reason for eviction is a little more subtle. Perhaps your tenants are not maintaining the property the way you expect them to. It’s possible they are not changing the furnace filters regularly or keeping the gutters clean. Maybe they are a nuisance in neighborhood – they could be throwing parties all the time and generating police activity. This will affect the value of your property and your standing with the neighbors in your community. It’s important that you detail your expectations up front. At Indiana Property Management Group, we have tenants who are moving into a property sign a six-page maintenance addendum that spells out their responsibilities.
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