What do you pay for property management?

8 Replies

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?

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@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.