What are the percentages expected in Columbus and in general, I know every area is different!? At what amount of unit numbers should the percentage go down?
Also, what other fees would PM's ask for, app. fees, late charge fees etc!?
For reference: I am paying 10% rents, plus $350 lease up (or $75 re-lease), $25 buildium fee (online records portal), $150 per eviction court appearance, no markup on labor/materials. PM keeps the late fees. This is for C class rentals, 29 units.
I'm fairly happy so far- this is a turnaround property that I've had for six months now -- should be at full occupancy in the next month or two.
In Dayton, Ohio, I'm seeing 10% of Rents & Late Fees, 1/2 to 1 month's rent for lease up, no markup on repairs. No other fees for online records, court appearances, etc. Also, if tenant does not stay for first year, no lease up fee to refill unit.
Monthly fee starts going down around 10 units or so.
In Cleveland, most mid-sized property management firms charge 10% monthly rent, $99 "start-up" fee (evicitions, so forth) and a $500 leasing fee. The latter covers advertising, background/credit checks, etc.
We're in Columbus. Here's our standard fee structure as of 5/2014:
-11% of collected rents (minimum $75/mo)
-One-time startup fee of $375/unit (higher if vacant)
-No leasing fee
-No advertising fee
-No annual fee
-No re-leasing fee
-No admin/portal fees
-We keep late fees
-$100 to evict a tenant already occupying the property when we took over mgmt, NO fee to evict a tenant we placed
-No markup on repairs under $500 or those done by our in-house handyman
-10% markup on improvements or repairs over $500 and managed by us
@Jean Bolger Sounds like you ended up with a great PM at least based on your comments - glad to hear your investment is working out!
Our property manager in Toledo charges 10% monthly management with a $200 start up fee and first months rent.
There are no add on's to the maintenance call outs which is how it should be IMO.
@Peter Lohmann - yes, I think they're a great fit for that property. It's early days yet with it, but I'm optimistic! I have passed your name on to a few folks who have asked for suggestions as well- hope they got in touch.
@Peter Lohmann I like your fee structure. I always thought typical property management structure (get paid to fill a vacancy, paid whether or not there is a tenant) was not aligned with the investor desire to keep properties filled with quality tenants and to reduce turnover. It's refreshing to see something a little more in line with what I would consider ideal.
Yup, that's exactly why we set it up that way - to align our incentives with the property owner's/investor's.
For off-site management, it's usually 8-12% income plus first months rent.
For on-site management, it's usually all expenses (advertising, payroll, admin) and about 4% income.
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