For those folks that pay management fees, is 1 months rent for leasing and 10% of the gross rent a reasonable rate?
Late fees would still go to the property owner, minus 10% too.
6-10% is average around here. So I wouldn’t say that 10% is a deal but I wouldn’t feel too bad about it. I would negotiate that 10% to 8% and be real happy about it. I like to feel like I got a deal. Otherwise I will end up being up their a** on a regular basis about what they are NOT doing. That way we’re all happy. :biggrin
For war zones around here, 12-14%.
Just think of what kind of area it is. If your houses are in areas where you have to talk to the tenant once or twice a year than the lower percentage is fair. If there is monthly drama and constant turnover the war zone percent is fair.
They are in a low income neighborhood - but I wouldn’t go so far to call it a war zone.
Well, I ran the numbers, and hiring a management company isn’t really worth it. My annual perecent yield will go down WAY TOO MUCH! LOL.
Low income but not war zone requiring lots of attention, 10% would be average around here. But I would still tactfully negotiate a better agreement.
Yea, it takes a big chunk out of the profits considering that YOU are still responsible for EVERYTHING and their money is for moving their mouth. They will also often get you on the repairs too if you let them make the phone calls on that as well.
As an owner, you want to pay a lot less to the management company.
It really depends what he is providing for the salary you are paying him.
On my 28 unit place, I pay a company 7% of the GROSS rents and that is it. I pay for advertising and for all maintenance.