Hi @Brian Prudden , there are different fees property managers charge in the Newark, NJ, Essex County.
Set Up Fee:
The set up fee is a fee you pay to sign up a property manager to manage your property. This is a one time fee and it usually runs from $500 and down depending on the company. This fee covers the cost of setting up an account with the property management company.
This is the main fee you will pay every month. This fee covers day to day management, things such as, rent collection, communication with tenants regarding any tenant complains, and responding to emergency maintenance calls. This fee is usually a percentage of all gross rents collected, some companies also charge a flat rate instead. These fees vary from market to market but the standard fee around our area is 10%, sometimes, if you have multiple properties you need managed, you may have more power to negotiate the fee slightly down. What I have noticed is that a good portion of property managers will not manage Newark, NJ properties for less than 10%.
This fee is a one time fee upon renting a vacant unit in your property. The fee is normally equivalent to one month rent, the cost can be paid by the owner of the property or the tenant interested in renting the unit. It is recommended for the owner to pay for this fee, as if you push this fee to the tenant, the unit may sit on the market a little longer than needed.
Lease renewal fees are a yearly fee that is collected upon renewing the lease to an existing tenant. This fee is normally a fixed rate fee, the amount varies by property management company but it will usually hover around $350 or less.
There may be other fees management companies could charge, these will vary from company to company but overall these are the most common ones.
I manage properties all over Northern New Jersey, including Newark and East Orange properties, properties I own and properties I manage for other clients, feel free to reach out if you have any additional questions.
Best of Luck!
Thanks for the info
You guys are amazing that can buy a turnkey property, pay a PM and make the #s work. I buy local, repair and self manage and make a decent return, maybe 10-12%. No way I have the smarts to make out of state/turnkey/PM work.