Negotiating Property management fees
I have just closed on my first property in Huntsville, AL and am in the process of setting up a property management company.
The turnkey company I purchased the home from (ROIPGM) have partnered with a property management company called Yellow Hammer. They have done this to have part control over the management company and make sure everything runs how it should.
So, am I purchasing the property with a tenant already in place that has been renting since January.
Now that I am starting to talk with the property manager I have all these fees popping up that were not discussed with me in prior conversations. Maybe I am just new to the game, but these fees seem crazy. What are your thoughts?
- Activation fee $150
- Leasing fee equal to one month's rent ($1,200) (is it typically a one time fee or everytime a new tenant is established?)
- Keeps 10% of months rents (not too worried about this)
- charges 10% of all repairs
- charges 10% of all materials purchased
- Charges $65 fee upon renewal of tenant lease
- Charges a 7 day "quit or Pay" notice to tenant for $35