Property Management Fees 12 Unit Apartment

[Brad T.]

Hello Everyone,

  I have a 12 unit apartment under contract and I am looking for a property manager. I would say it is a class B area and a class A building. The rent averages $950 per month. What do you think are fair fees?  The fees I am getting quotes for seem to be more like what I would expect to pay for single family. 

Thanks,

Brad

-% of collected monthly rent

-Leasing fee

[Ben Leybovich]

This is one of the problems with buying small. Aside for the % fee, you'll be charged leaseups and R&M coordination fees, and a building as small as that can hardly support these.

Don't buy into low 3% - 6% management fees. One - you get what you pay for, and two - they will eat you with hidden costs. Management on this will run all in 10% - 12%. And, this is the big problem - more than likely, you won't be satisfied with the management!

Good luck!