Do property management companies know market rents

[Darek Zurawski]

Looking into what could be a great deal but really need to nail down what market rents should be going for to determine if current rent rolls are in fact below market.  Is a property management company the best place to ask, what rents should be going for?  On that note, wondering if anyone could recommend a good property manager in the Winston-Salem, Greensboro area?  Are they the best people to ask about rental rates before the deal?

[Walt Dockery]

Originally posted by @Robert Gilstrap:

@Darek Zurawski If you're paying a PM a % of rent then you wouldn't experience what @Wesley H.has. That way the PM is incented to get the highest possible rent. Always structure compensation aligned with how human nature works and it's tough to lose.

I do not agree that in practice that's how many/most respond to incentives.  Say a PM makes 10%, market rent is $1,000, pricing under market at $900 costs the PM a measly $10/mo and may take significantly less effort to get it rented. 

Same goes for purchases/sales. If a realtor makes 3% as a sellers agent, they are generally incentivized to get a quick sale at a lower price than hold out for a slightly higher commission  ... IME a sellers agent is ALWAYS more eager to cut the price or accept a lower offer than the seller is. 

You are assuming an agent always wants to maximize commission, IMO that assumption is usually wrong and in reality if that last 10% of commission dollars takes significantly more effort most will take the easy $.90 over a more difficult buck.