I'm just wondering how much do property management company charge to manage a property?
and what do they do exactly? collect rent, go to court if tenant doesn't pay, clear snow, etc?
the property management company we use is a full service company. They collect rents, arrange for maintenance (snow removal, landscaping, etc) and are the point of contact with out tenants. The charges vary from company to company. Depending on the property and the company, it's either a percentage of rents or a flat fee. There are people here who can probably offer more info on researching companies.
It's going to depend on the size of the property/number of units.
We pay 5-7% of gross rents in tough towns to an experienced manager. He handles tenant issues, places new tenants, collects rent, and gives specific advice on how to handle situations.
His fee does not include landscaping/ snow removal, evictions, maintenance, or repairs.
We are looking at starting a full service PM company in essex county that will integrate current manager as well as provide detailed financial breakdowns and records, and provide clear communication and status updates to clients.
I am looking to do this out of necessity, a number of local investors have a hard time with quality management that can do the field work as well as the office work.
Typically you will see a wide variation ranging from 5% to 10% of collected rent. We have an internal property management team to manage our portfolio of assets. We charge 6.5% of collected rent and it includes rent collection, tenant issue handling, and monthly site inspections. It does not include eviction, maintenance, repairs, grass cutting or snow removal.
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