Property Management Cost for 4-unit in A class neighborhood?

Question

Trying to squeeze the numbers out on a 4-unit in a Class A area. Approximately how much % of rent would you estimate for property management?

Since this is in a Class A area and the rent is higher, is it fair to assume % off rent? The neighborhood next door could rent for $250 a door less, so would managers in a great area charge less than management for a area of lesser quality?

Also, the fact that it is a 4-unit, shouldn't there be a discount since all 4 doors are under the same roof (For convenience reasons)?

Jacob Blackett · Answer

I don't think that will be an issue, you can be clear and explain that you are in the process of purchasing a rental property and you'd like to ask them a few questions about the service they provide- ask for an overview of the services they provide, ask them what they think differentiates them from other mgmt cos, and then ask them about their pricing model. If you get rift on this then make a note that you don't want to work with that company in the future. @Adam Juodis

Jacob Blackett · Answer

Hey Adam, best way to gauge this is to hit the phones and call a handful of PM companies in the area. From my experience, you're pry looking at something around 7%. Nothing better then getting some direct quotes tho

Adam Juodis · Answer

@Jacob Blackett How do PM companies respond when you don't own the property or aren't even in contract? I know for insurance quoting purposes, the people working with me I could tell were taking it less seriously since i told them I don't own the place and haven't offered yet. For future reference, should I act like I'm the owner?