Ask for discount from property manager?

Question

I have been with my property manager from the start, about 5 years now. Its one of the larger companies in my area. I now have 21 single family homes being managed by them. All in all I am happy with the job they do and would never consider self managing.

Fees are pretty standard. New leases they take entire first months rent. Then 10% of gross monthly rents. $200 lease renewal fee.

Is 21 properties and counting enough to negotiate some of the above fees? I get volume pricing from most of my workers because I keep them so busy, is property management the same?

Jason Hirko · Answer

I negotiate after 10. Never had them say no in any market.

Account Closed · Answer

I'd at LEAST as for them not to have the $200 renewal fee.  That costs them almost nothing to do, including the time involved for the person to get them to sign.  Hell, they can set up a Docusign account, and streamline everything.

Adam Craig · Answer

My rents are between 1100-1300/month.

Max - They take full first month rent because they have more work involved then when renewing. They hire a agent to do showings, then they have advertising/leasing/screening time and fees. I think they certainly deserve a good chunk of that but defiantly not full month.

The company I use manages just over 700 properties. I called the biggest company in my area that manages just over 1000 and he said he could give me 8% instead of 10% because of my volume. But I did the math and it really doesnt save me that much money. The most money would be saved from money off first month rent fee.

I called around and it those rates seem pretty standard in our area.

Catherine German · Answer

Yes, always ask for a discount ! Their prices are high. Everywhere I have ever worked we charged 1/2 of the first months rent and a negotiable monthly rental rate percentage depending upon number of units. For as many units you have I would ask for 5% of gross monthly rents.

Dawn Brenengen · Answer

@Adam Craig What is the average monthly rent for your units?

Edward P. · Answer

I would ask. Are they all in the same city?

Ryan Matthews · Answer

I would never think of paying 10% management fee, let alone first month rent. My market must be just incredibly different but I'd laugh out of their office if they quoted me that.

Fred Heller · Answer

Can't hurt to ask. But I've noticed that the large companies tend to hold the line on their rate card.

Personally, I give discounts for multiple doors. The first 10 doors get one price. then 11-30 get a lower price, etc.

Ask for discount from property manager?

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