Asking for a PM fee structure spot check

6 Replies

Met with area PM & reviewing fee structure, and wanted a "BP spotcheck" to see if these costs are reasonable.

* Ongoing Maint Fee: 10% with min of $200/mo
* Leases: new --> 1/2 of 1 months rent with min of $1,000 // re-lease -> $200
* Maint/Service calls: normal business hours --> $50/1st hr, then $35/hr // Off hours --> $75/1st hr, then $50/hr.
* Project Management: 20% of total charges with $200 min.

@Joe E. that seems very expensive to me on the surface. Is this property a single family or something? I pay my PM 5% of the gross collected rents, 1/2 months rent for lease ups/$100 for re-lease, and around $35 per hour for maintenance. This is for a 20 unit apartment building though, so maybe that is the difference. Also, where is your property located? I have found that PM companies base a lot of their fee structure on the competition locally. 

@John Warren: Thanks for the repy. I recently met an REI focused agent in VT who has built an area TK, and reviewing docs before any signatures or property. The main items are a Exclusive Right to Represent Buyer Agreement as a Non-Designated Firm (3% BA fee for 12 month contract, & who's licensed in VT), and the PM structure above.

@Joe E. My pm inBurlington, VT is 75% of first month’s on new tenants and $50 per unit ongoing. Other managers I have interviewed were at 50% first months with a lower % of gross rents. Anyway you slice it with the exception of a really expensive one in the Chittenden County area most averaged around 6-8% when you looked at total fees annually over gross rent.
@Joe E. I’ve really enjoyed it. I went from a sfh to a duplex so that’s also made life a lot easier. Of course some months are easier than others but it’s all part of the game. I only wish I could buy more.