My $8000 problem. Do agents really deserve $200+/hr
I have a problem with paying people by percentage rather than pay per hour.
For example, nearly every single property manager charges a percentage of the rent 6% to 10% of the monthly rent for property management fees.
However, if a property rents for $2000/month vs. $1000/month - the property manager makes double! But is it double the work for the property manager? No way. In fact, it may take more work to manage a tenant/home that pays $1000/month versus a tenant that pays $2000/month.
I finally found a property manager who charges a flat fee of $75/month!! So instead of paying $200/month (10% of $2000/month), I saved $125/month.
Now, let's translate that to the lease up fee. It's the EXACT same problem.
If something rents for $1000/month vs. $3000/month - does the agent/property manager do 3X the work to get $3000 for lease up or finding a tenant who is willing to pay $3000/month versus getting paid $1000 (1 months fee) for leasing up a tenant for $1000/month?
It's the same work but the agent/property manager is make 3X the amount of money.
So here is my specific problem. I have several properties that need to be leased up and I"m calculating that it will costs me around $8000 in lease up fees!!
These are higher end properties with fairly high rents.
So here are my calculations
$8000/3 properties = $2600/per property
How long do you think a property manager spends to advertise your property, do background checks, and finally lease it up for you? 10 hours total, 20 hours, 30 hours, 40 hours?
I want to SHOUT out to BP to property managers/agents.
How many HOURS do you think you typically spend in order to find a tenant for a property?
Paperwork = hours
Advertising = hours
Showings = hours
background check = hours
miscellaneous = hours