Hello, what do you guys think is a fair rate from a property managment company for a 25 unit complex? 6% of gross rents? What range should I expect? Thanks, Andy.
I think 1% is fair but I’ll bet the PM company is going to think 12% is fair…
What is your expectations of their involvement? I would suspect that for full management, you need to expect about 10% plus possibly more for finding qualified renters, plus some add on for repairs…
I am currently paying 10% for 8 units. To be honest, I am not sure if that is high myself. I am about to by another 14 units and I was thinking that this may be a slightly lower rate, but I am not sure.
I own a property management business. I charge between 5 and 10%. Anything below 5 is too low and not worth it, so think hard about why they are charging so little. Anything over 10 is too high. No real reason other than they are ripping you off. I usually charge 8%.
How is it that you determine the rates? Do you have ranges of unit quanitities that apply to a certain rate such as 2-8 units (8%), 9-15 units (9%), etc.?
I base it on how much work I will have to do. But yes the more units the cheaper that rates. I have an 18 unit I charge 5% for. But a three unit I charge 8%.
The rates also depend on the city that the property is in and the size of the unit. Rates in California will be lower than in Texas simply because rents are a lot higher.
Thanks for the feedback. -Andy