Updated over 7 years ago on . Most recent reply
Low Rent Rates and Hiring a P.M.
Next Tuesday I am meeting with an owner of 2 small 6-plex units. They are 1/1 with one of the 12 units being a 2/2, and are all currently rented. The average monthly rental is around $350 (I think, I’ll know more info after meeting with the owner.)
I’ve had a few self-managed properties a few years ago, but currently don’t have any investment property.
From talking to other investors, I’ve heard that most PMs charge about 10% of the monthly rents, plus 1/2 of the first month rent. My main question is, do property managers typically charge a higher percentage on units that have lower rents? This is in rural Arkansas.
Secondly is the profit per door the most important? If I can get numbers to $50/door ($600/month), that will equate to a 15% cash on cash return.