Tampa, FL · Member since 2015 · 46 posts · 21 votes
Hi,
I just bought my first rental property last month. I live in NY and my property is in FL so the property will be run by a property manager.
I just received the property management agreement and the cost of property management is a little higher then I expected. Could somebody please tell me if the fees of this deal are reasonable.
Property location: Ocala FL
Expected Rent rate: $900
Fee for managing tenant relations: %10 of gross lease value
Fee for managing property: $100 per month.
First months rent goes to property manager. Also, 1st month rent of renewal's goes to property manager.
So then this would mean $190 every month goes to my property manager for a property that rents for $900. Is it normally that high for Ocala FL?
Investor · Central America, Panama · Member since 2010 · 423 posts · 293 votes
10y
These property management fees are ridiculous.
You should contact Michael Bielon. He does Master Leasing in that area and does not charge any property managment fees. Hi web site is OnTimeRents dot com
or contact DavidTilney dot com for other recommendations in that area. David trains people to do Master Leasing and has been doing it for more than 30 years.
PM fees are another good reason to not buy outside your own market. Those initial fees are just the beginning. If you need an air conditioner repaired or a roof replaced, a PM will tack on 10-20% of the cost of the repair .. just for making the phone call. Beware of additional fees for sending you accounting every month, etc
Someone who does master leasing does not play those games.
Investor · Sierra Madre, CA · Member since 2015 · 12 posts · 4 votes
10y
Wow, after reading this I am note sure how much I would trust her. First impressions kind of thing. I am hoping they will not try to nickel and dime you throughout the year to make up the fee's that they agreed to reduce.
I have properties in 4 different states, here are the average numbers for my PM.
Specialist · Pelham, NH · Member since 2013 · 544 posts · 269 votes
10y
This may have been mentioned, I didnt read all the posts. On the second document, the lease agreement, 3B needs either owner or broker checked off and 6A says first months rent to be split between broker and tenants broker but #7 says they also get $225 to 3 different brokers. So that agreement says you're paying $1575 when they find a tenant. I wouldn't edit and sign this document, I'd require new agreements to be written up. Never leave any doubt in a Judge's mind.
Tampa, FL · Member since 2015 · 46 posts · 21 votes
10y
@Derreck WellsThanks Derreck. Unfortunately I already edited and signed the document. I didn't realize it at the time but now that I'm comparing 6a to 7, I think my edits to 6a(changed full months rent to half) are now going to conflict with #7.
Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
10y
We own property in six different states and will be adding number seven shortly. PM fees are always negotiable. If I have multiple properties with one manager, I get 7% monthly fee. Finding a new tenant costs me ZERO in CA and CO. And between 50% and 70% in TX, OK, AZ, TN. Most have a small lease renewal fee, between 5-10%. Only one company charges me a commission for repairs and I believe that is a total RIP OFF. As a matter of fact, most PM's gouge a lot! Finding a good PM is like finding a Gold Mine. Be ready to FIRE a PM if you are not happy with them.