Meet Sarah: A Landlord's Journey
Meet Sarah. She owned three rental properties across the Salt Lake Valley—a $2,200/month duplex in Draper, a $2,800/month condo in West Jordan, and a $3,100/month single-family home in Sandy. For six years, she paid 10% commission to her property manager. The service was decent, but she never questioned the fees. That is, until she did the math.
Sarah’s story isn’t unique. Thousands of Utah landlords are realizing the same thing: there’s a better way. The traditional percentage-based model, which has been common since the professionalization of property management in the early 20th century, is starting to feel outdated. Here’s how she made the switch—and why it changed her rental business forever.
Sarah's 'Aha' Moment: The Numbers Don't Lie
Sarah dove into the world of property management alternatives, quickly discovering flat-rate models. These offered predictable costs, a welcome change from the fluctuating nature of percentage-based fees. She found companies like Ziprent and Hero Property Management offering flat fees in the Utah market, but Rentomatic stood out with its transparent, upfront pricing. Unlike the percentage model, where hidden fees for leasing, renewals, or maintenance markups can appear, flat-rate promised simplicity.
However, Sarah soon learned that flat-rate isn’t synonymous with “basic” service. Modern, tech-driven flat-rate companies leverage automation and cloud-based platforms to provide comprehensive services without escalating costs. This addresses a key controversy surrounding the value for money in property management.
Like many landlords, Sarah initially worried: “Does flat-rate mean ‘basic’ service?” Or, “Will it cost more in the long run through hidden fees?” She even feared a “loss of control.” Her research revealed that reputable flat-rate companies offer full service, transparent pricing, and owner portals for real-time visibility.
Transparency became her focus. She dug deep, asking about potential additional fees (maintenance markups, lease renewal fees, vacancy fees) and how the flat rate incentivized quick tenant placement and high-quality service, since the manager’s income isn’t directly tied to rent maximization. As Sarah noted, “I was worried about losing quality service. Instead, I discovered I could get the SAME service at a fraction of the cost, with far more transparency.”
The Switch: Making It Happen
Switching property managers, while requiring careful steps, was surprisingly smooth with Rentomatic. The process typically involves reviewing the current contract (30-90 day notice periods are common), formal notification, and a coordinated transfer of documents. Rentomatic’s tech-forward approach streamlined the process.
The entire transition took about a month and a half. While Sarah remained legally responsible for her properties, Rentomatic’s platform meant she gained more control through transparency without the day-to-day hassle. The shift meant less manual oversight as Rentomatic’s system handled rent collection, maintenance requests, and tenant communications.
Rentomatic’s cloud-based platform made integration seamless, centralizing all property operations and data. This solidified Sarah’s embrace of tech-driven management through a cloud-based platform, a key future development in the industry. She saw how automation and data analytics, enabled by PropTech, could enhance efficiency and scalability for property managers, ultimately benefiting landlords.
Six Months Later: The Results
| Property | Monthly Rent | Old Fee (10%) | New Fee | Monthly Savings | Annual Savings |
|---|---|---|---|---|---|
| Draper Duplex | $2,200 | $220 | $75 | $145 | $1,740 |
| West Jordan Condo | $2,800 | $280 | $75 | $205 | $2,460 |
| Sandy Home | $3,100 | $310 | $75 | $235 | $2,820 |
| TOTALS | $8,100 | $810 | $225 | $585/month | $7,020/year |
That’s right. Sarah’s annual savings of $7,020 allowed her to accelerate mortgage payoff, invest in property improvements, build an emergency maintenance fund, and finally breathe easier as a landlord. This demonstrates the cost-effectiveness of flat-rate for high-rent properties, where a percentage model would disproportionately extract more profit.
But the benefits didn’t stop there. She also noticed faster maintenance response times (tech-driven), better tenant communication through centralized online portals, and transparent reporting through an owner portal that eliminated the “hidden fees” frustration. The predictable costs simplified budgeting and removed the anxiety of fluctuating expenses.
Her Advice to Other Landlords
Sarah’s experience has made her a vocal advocate for questioning the status quo. Her advice is simple:
- •Do the math yourself: Don’t just accept traditional fees. Calculate your actual costs and potential savings.
- •Don’t assume all flat-rate companies are the same: While flat-rate offers predictability, some models might still have limited services or hidden “add-on” fees. Thoroughly investigate what’s included.
- •Ask about transparency and technology: Seek companies that are clear about all charges and leverage technology (cloud-based platforms, automation) for efficiency and communication. This future-proofs your management.
- •Evaluate the full service package: Don’t just look at the monthly fee. Consider the comprehensive suite of services provided, ensuring it meets your needs without unexpected costs. Does it cover tenant screening, leasing, maintenance coordination, and financial reporting?
- •Consider long-term value, not just initial savings: The real benefit extends beyond the immediate cost reduction to improved tenant retention, property maintenance, and stress reduction, which are invaluable for building wealth through rentals.
Closing Thoughts
Sarah’s story represents a shift happening across Utah and the broader real estate industry. Smart landlords are realizing that percentage-based management, while historically prevalent, is often an outdated model. The future of property management is moving towards transparent, predictable, and tech-driven solutions.
Flat-rate, transparent, tech-driven property management isn’t just a cost savings—it’s a fundamental upgrade to how landlords can build wealth through rentals, leveraging advancements like AI and automation for better efficiency and tenant satisfaction. It addresses common landlord frustrations and paves the way for a more profitable and peaceful investment journey.
Your story could be next.
👉 Ready to do your own math? Let’s show you how much your properties could save with Rentomatic’s flat-rate model.
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