I want to get a new property management company.

General Real Estate Investing
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I want to get a new property management company.

Danilo Ojeda
Rental Property Investor · Minneapolis, MN · Member since 2020 · 10 posts · 2 votes

I’m thinking about getting a new property management company. I’m currently with renters warehouse. They charge rent and a half if they find someone and lease it for 2 years. For them to manage it it cost $109 per month. Which other property management would you guys recommend and why? Also if I get another 2 year lease, renters warehouse charges a month and half of rent. So rent is $2,200. That’s a total of $3,300.

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Christopher B.
Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
5y

On the plus side, $109 of $2,200 is about 5%, pretty far below the 8-10% that most pay.  8% of $2,200 is $176.  The difference is $67/month.  $67 x 24 months is $1608.  $3,300 - 2,200 is $1,100.  You are ahead by $508, compared to what most pay per month for smaller rental properties.  If they are charging another 1.5 of the rent for a renewal, perhaps you can negotiate that down.  

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  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    5y

    Not sure the issue you’re having. A two-year lease versus a one year lease is very attractive to many landlords. If there is a turnover and any sort of repairs or updates due to a turnover you will possibly lose the little bit that you felt like you paid extra to this management company. Just a thought it’s your property of course.

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  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    Agree. Find one that charges one months rent. 

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  • Christopher B.
    Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
    5y

    On the plus side, $109 of $2,200 is about 5%, pretty far below the 8-10% that most pay.  8% of $2,200 is $176.  The difference is $67/month.  $67 x 24 months is $1608.  $3,300 - 2,200 is $1,100.  You are ahead by $508, compared to what most pay per month for smaller rental properties.  If they are charging another 1.5 of the rent for a renewal, perhaps you can negotiate that down.  

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    Everyone assumes property managers are one-size fits all and they all provide the exact same quality of service.

    It sounds like you want the lowest fees PERIOD - which will lead to hiring an inept PMC and getting burned. 

    Then you will post here on BP how PMC's are all thieves and to avoid them - when the real problem is that you got what you paid for, but didn't like it.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
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