Rental Property Investor · Houston, TX · Member since 2016 · 24 posts · 14 votes
I am looking to invest in Cleveland, Ohio and I would like to know what you suggest including in monthly property management/maintenance fees? I’ve only ever purchased homes in Houston, Texas so the first thing that comes to mind is snow removal. What other things would you add? And approximately how much would you allocate? I’m looking at small multi families. Thanks!!
I am looking to invest in Cleveland, Ohio and I would like to know what you suggest including in monthly property management/maintenance fees? I’ve only ever purchased homes in Houston, Texas so the first thing that comes to mind is snow removal. What other things would you add? And approximately how much would you allocate? I’m looking at small multi families. Thanks!!
Most property managers in Cleveland are going to charge 10% of the rent plus a 1 month leasing fee. As for snow no need to worry about it on duplexes and single family houses which seem to be what 95% of the BP crowd is interested in buying.
I am looking to invest in Cleveland, Ohio and I would like to know what you suggest including in monthly property management/maintenance fees? I’ve only ever purchased homes in Houston, Texas so the first thing that comes to mind is snow removal. What other things would you add? And approximately how much would you allocate? I’m looking at small multi families. Thanks!!
Most property managers in Cleveland are going to charge 10% of the rent plus a 1 month leasing fee. As for snow no need to worry about it on duplexes and single family houses which seem to be what 95% of the BP crowd is interested in buying.
@James Wise Thanks so much! Do I not need to worry since it is included in that 10% or because those types of properties don’t require snow removal?
To clarify I would not phrase it in a way that it's "included in that 10%" because your property manager will not remove snow for you or your tenants in single family houses or duplexes as the cost to due so would be much higher than what they are charging with that 10%. If we're talking about a single family house in Cleveland the rent is probably around $1,000/mo and duplexes are going to be approx. $600-$800/mo. So the property manager is pulling in approx. $100/mo-$160/mo in property management fees from your account. 1 push of a Cleveland driveway is going to be around $30-$35 or so. Add that to other costs it would be an unprofitable business model for any property manager.
But to answer your question. No you do not need to pay for anyone to remove snow from single family homes or duplexes. Property managers will let your tenants know that they are responsible for any snow removal at their residences.
Property Manager · Cleveland, OH · Member since 2020 · 268 posts · 315 votes
5y
I personally budget $50/month/unit for maintenance, sometimes it high and sometimes its low but I think that for ongoing maintenance its a fair number for budget purposes. Just to be clear it will almost never be $50/month, it will come in spurts, a small furnace repair, a leaking faucet, a backed up drain, etc and then some months with no maintenance. Maintenance will continue on an ongoing basis, most rental properties have deferred maintenance so it might be a bit heavy right after take over and then hopefully it will level out.