Quick question. Running the numbers on duplex and budgeting in 10% for Property management. Do property management companies charge you per unit or total for the property? Thanks in advance
Typically, they charge you a percentage of gross rents (I have seen 6 to 10%) and various fees. One such fee is the tenant placement fee. When they install a new tenant, they will typically charge 1/2 to 1 month's rent. They may have lease up fees, eviction fees, inspection fees, maintenance fees, etc.
You will find that they will vary from each company in percentages and fee amounts. Therefore, it may be difficult nailing down an exact percentage of total.
Thank you David! Appreciate the insight
@Derek Worsley It's typically per unit....to quickly answer your question.
Good luck out there!
@Brad Larsen thank you!
PM services are almost universally priced by the door/lease. So a duplex is 2 doors, a triplex is three, etc. Factor leasing fee up to one months rent and monthly mgmt fee from 6-10% depending on area.
I would call a few property management companies in the area of the property you are looking at! Tell them you are considering purchasing and ask for their rates.
Free eBook from BiggerPockets!
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.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing