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Updated over 7 years ago on . Most recent reply

User Stats

22
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10
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Pat Alford
  • Austin, AR
10
Votes |
22
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Low Rent Rates and Hiring a P.M.

Pat Alford
  • Austin, AR
Posted
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.
  • Pat Alford
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