Apartment Property Management Typical Fee Structure

[Keivan Darius]

I'm in the process of hiring a new PM company for our 30 unit complex. Their fee structure seems to be a bit high considering they charge 10% of monthly rental income. I wanted to run it by BP family to see what you have been paying or how your agreements are setup with your PM

[Michael Albaum]

Hey Keivan, that seems outrageous for a 30 unit building. Unless it's in a horrible area that will require a ton of babysitting, 30 units definitely seems large enough to get some bulk discount. I own property out in Covington, KY and have 30+ units under management there and am paying 7% or rent collected and 50% of 1st months rent as a lease up fee. 10% just seems way too high. Do they also have markups on construction/repair work that's done on the property?