Rent Collection Delinquency is handled by SPM with notices and demands as needed. When appropriate, we work out a payment plan with the tenant. You will be notified if delinquency will impact your monthly payout. If a payment plan cannot be agreed upon, evictions are initiated on the 21st of the month. Eviction cost: $550.
Funds Distribution Funds are distributed on the last business day of each month. This allows us to collect rent and process all charges associated with that month before distributing to owners.
Management Fee SPM's management fee is 7% of gross monthly rents collected. The fee is earned daily and payable monthly. Note that a vacancy or a tenant's failure to pay rent does not eliminate the minimum management fee obligation under the agreement — however, SPM's practice is to collect the management fee only when rent is collected.
Monthly Owner Statement We send an itemized owner statement on the last business day of each month via email (through AppFolio). Statements include all income and expenses for the month: rent, maintenance charges and refunds, insurance charges, commissions, and management fees.
Annual Reports SPM produces an annual 1099 financial report of asset performance, along with all appropriate tax documentation. Fee: $45/year.
Online Portal — Custom Reports Owners have 24/7 access to property statements and financial records via the AppFolio platform. You can generate custom Income Statement and Cash Flow Reports for your properties at any time.
The following fees apply under the SPM Addendum and Management Agreement:
| Fee | Amount | When It Applies |
|---|---|---|
| Management Fee | 7% of gross monthly rents collected | Monthly |
| New Lease Fee | 85% of one month's rent | At lease execution |
| Renewal Fee | $395 flat | At formal renewal (not month-to-month) |
| Annual 1099 / Tax Prep | $45/year | Year-end |
| Setup Fee (tenant-occupied at onboarding) | $100/unit | One-time at onboarding |
| Home Warranty Coordination | $45/service order | Each time warranty is coordinated |
| Home Warranty Bypass (if provider can't respond within 96 hrs) | At cost | As needed |
| Owner-Provided Applicant Processing | $395 flat | If owner sources their own tenant |
| Sale Coordination | $95/hour | If owner decides to sell during management |
| Broker Fee — Tenant Purchases Property | 2% of sales price | At closing |
| Make Ready Overhead & Contingency | 10% of labor + materials subtotal | On all fixed-price projects |
| Insurance (if SPM purchases on owner's behalf) | Cost + $15/month fee | If owner fails to maintain required coverage |
| Casualty Coordination | $95/hour | If owner requests SPM coordinate with insurance carrier |
| Legal Proceeding Cooperation | $95/hour | If SPM is asked to appear in legal matters |
No Termination Fee — Shannon Property Management does not charge a termination fee when an owner cancels management.