How much do you pay your property manager?

6 Replies

I'm just curious as to some average costs of property managers (around the Augusta GA area). I have been looking online and it seems most places charge you 10 percent/month, including a month's rent whenever they find you a tenant. Is this legitimate? Unless my guesstimate is wrong, that's almost 20 percent of your income/year you are paying in order to have a property manager! 
Is it worth it? Or am I looking in the wrong places?

Promotion
Innago
Property Management Software
Manage Your Rentals Better For Free. Save Time & Money.
Easily Collect Rent, Screen Tenants, Sign Leases, List Properties, Manage Work Orders, & Much More!
100% Free Try It Now

I pay 8% in my market and no lease up fees.  The cost of vacancy, maintenance and cap ex are more important to me than the management fee and the property manager will have a big impact on them.  I'd pay more than 8% if the other stuff is handled effectively.

I've see it advertised around here for 8%.  I think they usually seek lease renewal (finder's) fees though.  I would never use a property management company that has an implicit perverse incentive to be lax on the screenings due to turnover profitability.

When I reach #10 I'll probably look into property management.  That way I can be more hands on with the next 10.  8% doesn't sound like much.  Might be able to negotiate better deals the more properties too, maybe?.  Eventually, you'll want more time.  Unfortunately, you have to pay for it.

You get what you pay for. 10% without any other fees for new tenants doesn't leave much for advertising, background checks, multiple showings, contract signing, time for turns, multiple move out inspections, and new renter/ key transfer/unit education. I know everyone thinks that property managers make a killing on new tenants, we charge 1/2 months rent and believe me I would rather keep the place rented than collect the 1/2 months rent.

You might say well why is the X% there? We put together monthly reports with photos, collect rents, issue notices, make sure fair housing laws are being adhered to, keep owners from being sued, 24/7 emergency access, hire and supervise contractors, supervise caretakers, supervise maintenance personal, ensure evictions can legally occur, respond to tenant complaints, organize and file receipts for expenses, respond to online reviews, and, ensure city compliance.

Cheaper rates may mean they are just collecting rent and nothing else unless someone calls, or a craigslist as for renters and a poor screening process. A bad pm will cost you much more money than a good one. A good one will save you more money than they cost.

Originally posted by @Amber Gonion :

You get what you pay for. 10% without any other fees for new tenants doesn't leave much for advertising, background checks, multiple showings, contract signing, time for turns, multiple move out inspections, and new renter/ key transfer/unit education. I know everyone thinks that property managers make a killing on new tenants, we charge 1/2 months rent and believe me I would rather keep the place rented than collect the 1/2 months rent.

You might say well why is the X% there? We put together monthly reports with photos, collect rents, issue notices, make sure fair housing laws are being adhered to, keep owners from being sued, 24/7 emergency access, hire and supervise contractors, supervise caretakers, supervise maintenance personal, ensure evictions can legally occur, respond to tenant complaints, organize and file receipts for expenses, respond to online reviews, and, ensure city compliance.

Cheaper rates may mean they are just collecting rent and nothing else unless someone calls, or a craigslist as for renters and a poor screening process. A bad pm will cost you much more money than a good one. A good one will save you more money than they cost.

 This was a pretty helpful post regarding some of the responsibilities of a property manager. Thanks for the incite!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you