Property management company

New to Real Estate · Bc · Member since 2024 · 9 posts · 1 vote

Just looking for a company to manage a 2 bedroom condo in dt Edmonton. So far the one lead I had left me with zero call backs.

who would you guys recommend?

Also AI said some companies charge a fee of 10% on top of repairs/ maintenance is this true?

Thanks for your time.

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Stephen Delahoussaye

Real Estate Broker · Nashville, TN · Member since 2022 · 163 posts · 87 votes

5mo

Chris, PM here running about 20 doors in Nashville. Let me break down the fee structure from the operator side so you know what to expect and what questions to ask.

The management fee itself typically runs 8 to 10 percent of collected rent. Some companies charge on gross scheduled rent, some only on collected rent. That distinction matters because if your tenant does not pay, one company charges you anyway and the other does not. Always ask which one.

The 10 percent markup on repairs and maintenance is common but not universal. Some companies charge it, some build it into their management fee, and some charge a flat coordination fee instead. The markup covers the time your PM spends getting quotes, coordinating access, and quality checking the work. It is not pure profit. But if a company is charging 10 percent management plus 10 percent on maintenance plus a leasing fee plus a renewal fee plus a setup fee, add all of that up before you sign.

The real cost of a bad PM is not the fees. It is vacancy. A company that is slow to turn your unit or bad at screening costs you far more in lost rent and eviction expenses than the difference between 8 and 10 percent management.

For one condo, here is what I would look for: a company that manages similar unit types in your area, has a clear written management agreement you can review before signing, and can tell you their average days on market and turnover time. Those numbers tell you more about their quality than the fee percentage does.

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Bryce JamisonPro Member
Rental Property Investor · Mebane, NC · Member since 2015 · 494 posts · 439 votes
5mo
If at all possible, I'd highly recommend managing it yourself.

Each management company will have their own pay structure, but typically they'll charge a fee to find a tenant, typically 1 month's rent, and ~10% of monthly income.

Even if they manage the property, you'll have to manage them. If you do go the PM route, ensure you set a dollar limit on what repairs they can make without your approval, and have a discussion about what types of damages / repairs you'll approve.

No one is going to care about your property, or your bottom line, more than you. In your case this is exacerbated because they're going to have one of their junior associates assigned to your property since it's only 1 2 bed condo.

Search the forums for property management stories. I can't recall ever seeing one about how happy people are with their manager. From what I've seen, even the better ones are just fine. If you only have this one property, I bet you can manage it for less than 30 minutes a month and a few hours to call vendors for turnarounds ever few years when you get new tenants.
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Adam BartomeoBusiness Member
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
5mo
AI is often inaccurate even though some folks take it as God speaking the word of truth.
[email protected]239-339-3969
Bartomeo Property Management4.7156 Reviews
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Chris Preone
OP
New to Real Estate · Bc · Member since 2024 · 9 posts · 1 vote
5mo
I don't live anywhere close to Edmonton is the biggest problem, it's a hour long flight.. I have 2 doors in GP and my pm is incredible, maybe I just got lucky finding that one.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
5mo
Quote from @Chris Preone:

Just looking for a company to manage a 2 bedroom condo in dt Edmonton. So far the one lead I had left me with zero call backs.

who would you guys recommend?

Also AI said some companies charge a fee of 10% on top of repairs/ maintenance is this true?

Thanks for your time.

10% is pretty standard in the industry.
[email protected]248-209-6824
Logical Property Management4.9464 Reviews
Website View Page
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David PeschioBusiness Member
Richmond, VA · Member since 2019 · 358 posts · 181 votes
5mo
Not sure Bryce. Seems like self managing is fine when all is going well but when somebody has a horrible experience then they start looking for help. Rules and regulations are always changing and lots of people are unaware and leave themselves exposed which can be very costly.
[email protected]804-909-1929
PMI Richmond4.4310 Reviews
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Stephen Delahoussaye
Real Estate Broker · Nashville, TN · Member since 2022 · 163 posts · 87 votes
5mo
Chris, PM here running about 20 doors in Nashville. Let me break down the fee structure from the operator side so you know what to expect and what questions to ask.
The management fee itself typically runs 8 to 10 percent of collected rent. Some companies charge on gross scheduled rent, some only on collected rent. That distinction matters because if your tenant does not pay, one company charges you anyway and the other does not. Always ask which one.
The 10 percent markup on repairs and maintenance is common but not universal. Some companies charge it, some build it into their management fee, and some charge a flat coordination fee instead. The markup covers the time your PM spends getting quotes, coordinating access, and quality checking the work. It is not pure profit. But if a company is charging 10 percent management plus 10 percent on maintenance plus a leasing fee plus a renewal fee plus a setup fee, add all of that up before you sign.
The real cost of a bad PM is not the fees. It is vacancy. A company that is slow to turn your unit or bad at screening costs you far more in lost rent and eviction expenses than the difference between 8 and 10 percent management.
For one condo, here is what I would look for: a company that manages similar unit types in your area, has a clear written management agreement you can review before signing, and can tell you their average days on market and turnover time. Those numbers tell you more about their quality than the fee percentage does.
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