Turnkey Company Fees

[Alejandro Hayden]

Greetings BP!

What kind of fees should one expect to pay a PM company? Are fees like these common for most PMs?

- Account Setup Fee

- Leasing Placement Fee

- Renewal of Lease Fee

- Bill Collection & Payment on my behalf Fee

- Site Visit Fee

I could potentially work with a turnkey company that not only provides properties but also provides the PM service. It just seems as if the monthly 10% of using the service could increase significantly if i take into account all of these fees. There are some I left out too so there’s more.

Any advice?

[Nicole Hoss]

@Alejandro Hayden Hi! I suppose fee structures are different across the country, but where I invest in Indianapolis, it’s typical to pay lease up fees, a renewal fee, and 10% PM fee. The extra charge for leading up and renewal is because the lease up agents are sometimes contract employees and this is how they get paid. The 10% management fee goes to the PM company each month to oversee your property. Those other fees you listed must be something maybe a national company charges? I haven’t seen those fees with any of the PMs I’ve worked with in Indy.