Our Management Agreement outlines these common expenses; we will break down the costs below:

• ‍Management Fee: 9% — of the collected gross rental income is paid to Baker Street monthly to manage the property. Deducted monthly from the Owner’s account and/or subsequent owner draws.
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• Leasing Fee: 50% — of the first month’s rent is collected to advertise, lease, and place new tenants in the property if vacant. This one-time fee is collected at the time of the lease signing.
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• Renewal Leasing Fee: $250 — one-time fee if the current tenants stay on the property and we sign a renewal lease with them. This one-time fee is collected at the time of the lease signing.
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• CofC Inspection Fee: $500/$750 — this fee is for Baker Street to coordinate and manage first-time ($750) and renewal ($500) city rental inspections.
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• Maintenance Threshold: $500 — refers to the dollar amount threshold above which prior authorization from the Owner is required for Baker Street to be repaired.
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• Electronic Keypad Installation: $200 per door — the approximate one-time cost to install an electronic keypad deadbolt on the property’s exterior entrance doors.
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• Maintenance Reserve: $500 — is collected once a management agreement is signed. The funds are held in escrow until the end of the management contract or taken from rent if the property is occupied.

Onboarding Maintenance

• This refers to the related expenses to prepare a property for a first-time rental. Often, some repairs are required to remedy deferred maintenance issues and prepare for a tenant to occupy the unit. Some examples may include:
  • A thorough yard cleanup may be required
  • Interior and exterior paint may be necessary
  • Major systems may need to be replaced (e.g., a water heater with minor leaks, an air conditioner that is not properly cooling, etc.)
  • Improve fixtures such as bathroom vanity, shower heads, toilets, etc.
• Onboarding maintenance repairs may coincide with the rental license process.  Onboarding maintenance often varies per property.

Property Rental Inspection (CofC)

• The City of Ann Arbor, Ypsilanti, Ypsilanti Township, and Pittsfield Township require Rental Licenses or Certificate Of Occupancy (CofC).
• Charged at the time that the rental inspection is scheduled for coordinating and managing the CofC process. If a property has not been a rental property before and is located in the City of Ann Arbor, or the CofC has lapsed for more than one year, a one-time fee of $750 will be charged to the Owner to obtain the CofC. For all other Cities and Townships, the fee will be $500. The cost of Baker Street coordinating the renewal CofC inspection process is $500 for the City of Ann Arbor and $250 for all other Cities and Townships.
• For Baker Street to manage and coordinate a renewal city inspection, we charge $500, for first-time city inspections, we charge $750.
• Please read more information about City Inspections in our Inspection Guide.

 
Maintenance‍

• Cleaning and maintenance between tenants are what we refer to as turnover. Under Michigan law, we cannot charge tenants for the cleaning of a property. We can also only withhold money from the Security Deposit for damages and not everyday wear and tear. We recommend that owners budget one month's rent to cover these costs.
• Please read more about these expenses in our Property Turnover Guide.

Turnover

• Cleaning and maintenance between tenants are what we refer to as turnover. Under Michigan law, we cannot charge tenants for the cleaning of a property. We can also only withhold money from the Security Deposit for damages beyond everyday wear and tear. We recommend that owners budget one month's rent to cover these costs.
• Please read more about these expenses in our Property Turnover Guide.
  
  

Seasonal Landscaping

• Owners should budget for seasonal landscaping, including spring and fall cleanups and gutter cleaning. We will coordinate these services with our landscaping vendor and communicate with owners on pricing for the season. Please find our guide on Seasonal Cleanup Process for Owners.
• Snow removal is another expense to expect if the property is a multi-unit property or if you have a preference to provide snow removal. Please find our guide on How Snow Removal Works for Owners.