Fee Price Increases Effective 1 January 2023
Attention all Owners!
Effective 1 January 2023, the respective property management plans listed below will see an increase in charges:
- Silver Property Management Plans will raise to $110 per month.
- Gold Property Management Plans will raise to $165 per month.
- Platinum Property Management Plans will raise to $225 per month.
- Multiple Property Owner Plans (MPO) will raise to $95 per month.
As with everything in this recession bound economy, prices are going up. Our team has debated this issue for months and must make the adjustment to coincide with the cost of doing business and rising expenses.
We believe our fees are still very competitive in relation to the rest of the property management firms in our market, most having percentage-based property management fees of 10% or more.
There is a silver lining – and that is rents are rising! In the last 18 months, our region has seen a significant double digit rise in rental rates across the spectrum. Texas has been a destination state for many people looking to relocate for a myriad of reasons. Take that into consideration along with the population growth and it becomes simple supply and demand. There is minimal supply, and a ton of demand – making your investment strong.
Historically it has also been documented that in any part of our history that has seen an extreme uptick in the interest rates governed by the Fed and banking institutions, the rental rates follow that upward trend. We expect to see continued growth in the average rental rates for our region.
To fully comply with the IRS requirements of filing a 1099 on behalf of each of our clients, we are forced to offset this charge with a fee. Each year, RentWerx takes great steps to ensure full compliance with the IRS requirements and conducts a thorough review with the Badger & Badger CPA firm. Our annual review works closely with the IRS to verify the Taxpayer Identification Numbers (TIN) as recorded in the IRS database or sent to us for review with the IRS form 1098. This reconciliation effort will often need to be corrected by a letter for a name or a number for an address ensuring all amounts and info issued to the taxpayer are verified. These steps are necessary to ensure that neither RentWerx nor our clients put themselves into a situation to trigger an un-wanted audit.
To help compensate for the great lengths we must go through in this process for IRS compliance, we are forced to raise this charge across the board to our owners effective 1 January 2023. Should you have any questions regarding this policy change, contact your property management team.
Respectfully,
Brad Larsen
Founder & Owner
_________________________________
RentWerx
21222 Gathering Oak #103
San Antonio, TX 78260
Website: www.RENTWERX.com
Email: Web@rentwerx.com
Office: (210) 497-8686
