People usually talk in metrics of the monthly cost, like 8-10%. However when you add in lease fees, inspections, etc, it ends up more like 11-14%. Do you underwrite deals at the higher amount favoring in all these costs?
@Seth Levey . I am paying 8% on a duplex right now in the Cincinnati market. I've been told by people that do this a lot that8% is a good number...can go as high as 10% in this market.
@Jay Stewart did you ever calculate your total cost including leasing fees, etc?
Not yet, this is my first rental property. I am currently looking to contact with additional property managers to learn about any differences in fees
8%. 100% to place a tenant. No renewal.
@Seth Levey closer to 20% when tenants stay for a year
@Seth Levey . 7 percent management fee. That’s it. I am more hands on though than I have been with other PMs in the past.
@Seth Levey Wary of PM companies for SFH. They don't make enough money on it to take care of it like you would, and their goals aren't aligned with yours. Think about it, you make money when a tenant stays, they make money when a tenant leaves and can do clean outs and tenant placements.
We typically charge 8-10% flat fee of gross monthly rents with no additional fees included. We will likely roll out a Leasing fee at some point, but it won't be more than $100. So even if you included that fee, you're looking at close to 11% tops. You get what you pay for though, keep that in mind.