SFR Property Managment Fees?

Question

I just talked to a local property manager about their fees and services. They are charging the first month's rent plus 10% of rent per month thereafter for SFR rentals. They market the property, manage payments, and hire out repairs/maintenance (after owner's approval).

Is this a reasonable fee?

What other questions should I ask them?

Any "red flags" I should watch out for?

Thanks for all your guys help!

Is this a reasonable fee?

What other questions should I ask them?

Any "red flags" I should watch out for?

Thanks for all your guys help!

Joseph Molander · Answer

Thanks, I'll shop around.  There are a couple companies in there area, hopefully I'll learn a little something.  I don't have a property yet, still looking for that good deal.  I I'm closer having the property I'll see if they are willing to negotiate a little.  Thanks again.

Chris Erwin · Answer

@Joseph MolanderIs the property rented currently? Make sure you set a limit on what they can repair without approval. I agree with Zach that having a good property manager is more times than not the difference between making money and losing money.

Zach Liu · Answer

The charge seems a little high to me. But this can be local so talk to a few more to figure things out. Usually PMs charge a certain amount for lease-up (70% - 90%), renew (25% - 35%), and monthly 7% - 10%, to give you a reasonable range.

Low cost is important, but finding a good professional is more important!!! you can loose money to get a lousy PM working for free. But still, the charge you provide seems too high.