Posted by Tony on August 28, 2003 at 09:44:09:
I pay 7%.
Property management company fees - Posted by Frank
Posted by Frank on August 26, 2003 at 21:57:58:
Hello everyone and thank you in advance for your input.
I have a friend who is very tired of their apartments, but don’t want to sell. They are thinking about going with a property management company. I see an opportunity here and was wondering what does the average property management company charge? Is there a percentage or per until fee? How can I determine these fees.
I am getting my real estate license and will continue to get my broker license with hopes of starting my own property management company, but is it something that would be worth while? I do have handymen available for any repairs and such, I could do the landscaping/lawncare and snow removal myself.
Can I ask for a fee up front such as a retainer fee?
Thanks for any input you can give me! Greatly appreciated.
Frank
Re: Property management company fees - Posted by Steve in San Fran
Posted by Steve in San Fran on September 02, 2003 at 23:04:47:
In my experience the fees vary based on the number of units. Single family generally goes from 8 - 10% depending on the area. Small multi-family ranges from 6 - 10% depending on the unit count, services provided, and average rent per unit. The more the PM does and the lower the rent $, the higher % they’ll charge. Larger multi-family (50+ units) can get down to 5% in some areas.
Note in almost all cases there also is a charge for leasing the apartment/house. This varies from 50% to 100% of one month’s rent on a new lease. Many also charge a smaller percentage for renewals to the same tenant.
Most PM’s do require an upfront escrow deposit but I’ve never heard of a retainer fee. Note that deposit cannot be spent on anything but expenses directly related to servicing their building – you cannot spend it on your fees, for example.
Most importantly, you need to check your local laws to see what education or license, if any, is required to serve as a property manager if you do not personally won the property. I’m in CA and here you would need a real estate license and possibly other training & certification depending on the unit count.
Good luck,
Steve