Saint Louis, MO · Member since 2017 · 27 posts · 3 votes
Hello BP members,
Do you have any recommendation for the property managers located in St. Louis MO. I am looking for 5 efficiency units apartment complex that gross around 3.5K/month. Any recommendation from your past experience would be of great help. Also do you know what percentage do they generally charge for the management fee or the breakdown of their fees from your experiences?
Real Estate Agent · St. Louis, MO · Member since 2019 · 58 posts · 45 votes
4y
Hello @Prakash B.! I am an agent and investor in the St. Louis area with Mogul Realty. Our brokerage has a PM company that you can work together or independently with, and I have other PM companies that I can recommend if you want to send me a message. Most PM's are going to charge 10% for this type of building. When you get into the the 10-12 unit buildings, you'll see them drop their fees to 8%. Filling vacancies is typically equal to 1 month rent. So if the rent is $750 per month, they charge $750 for photos, marketing, showing the unit, background check, etc. There will also be fees for maintenance trip charges. We hve a fee sheet that I can send that may be helpful for you as well. Hope this helps and let me know if I can assist any further!
Real Estate Agent · St. Louis, MO · Member since 2019 · 58 posts · 45 votes
4y
Hello @Prakash B.! I am an agent and investor in the St. Louis area with Mogul Realty. Our brokerage has a PM company that you can work together or independently with, and I have other PM companies that I can recommend if you want to send me a message. Most PM's are going to charge 10% for this type of building. When you get into the the 10-12 unit buildings, you'll see them drop their fees to 8%. Filling vacancies is typically equal to 1 month rent. So if the rent is $750 per month, they charge $750 for photos, marketing, showing the unit, background check, etc. There will also be fees for maintenance trip charges. We hve a fee sheet that I can send that may be helpful for you as well. Hope this helps and let me know if I can assist any further!
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.
We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
Hello @Prakash B.! I am an agent and investor in the St. Louis area with Mogul Realty. Our brokerage has a PM company that you can work together or independently with, and I have other PM companies that I can recommend if you want to send me a message. Most PM's are going to charge 10% for this type of building. When you get into the the 10-12 unit buildings, you'll see them drop their fees to 8%. Filling vacancies is typically equal to 1 month rent. So if the rent is $750 per month, they charge $750 for photos, marketing, showing the unit, background check, etc. There will also be fees for maintenance trip charges. We hve a fee sheet that I can send that may be helpful for you as well. Hope this helps and let me know if I can assist any further!
I am in a similar position. If you can share that fee sheet with me as well I would appreciate it.
Logical Property Management4.9451 Reviews