Updated over 3 years ago on . Most recent reply
Property Management Costs
Wanted to throw something out there in terms of doing property analyzing. New guy here so maybe there is something I am missing.
Rent is $1200/mo, property manager takes 10% plus 100% of the first months lease ($2520). This actually works out to be about 17% of the total yearly income ($2520 of $14400). So when running your numbers do you run for 17%? None of the books or podcasts I have listened to have ever brought this factor up, but it seems to make a big difference in the CoC Return, especially if you are leasing year to year. Thoughts? To me this could make most Turnkey deals instantly become not even worth looking at.