I have always been interested, but obviously there are risks with the types of renters, turnover etc. My issue is managing it. I am in Chicago so it's not realistic for me to manage a property. Does anyone have a rough idea of what property managers will charge in some college towns? I know it can vary greatly, but I just have no idea if it is typically more or less than being in a big city. Thanks.
It depends what type of property. I have single-family rentals down at U of I in Champaign/Urbana and my property management charges 10%.
Thanks John. I was just trying to get a rough idea and that would make sense for a single family home. How is Champaign going for you?
I live in a super small college town so I am not sure if this qualifies, but it is usually somewhere between 8-10% of the rent.
It's been good so far. I'm off campus so my tenants are nurses/grad students/etc. There is a very large pool of renters and the price to rent ratio is solid. They are fairly new acquisitions. Like you said, I'm guessing the turnover will be higher than the typical SFR.
Use couple property managers here in Champaign and it is 9-10% gross rent.
They lower the fee to 9% when you give them more units. Depending on size apartments 5-6%