I am starting a new property management business in Southern Maine and I was wondering the going rate to manage properties. I am focusing my efforts on single-family homes.
1) How much do you charge for placing a tenant?
2) What percentage or amount do you charge each month?
Also, if you have a property management agreement form you'd share with me, that would be excellent.
Hi @Alexander Kappelman , I haven't had any SFH under management, but with the multi-family properties, the typical fees I've experienced are 7%-10% (depending on the property size) of gross monthly rents and 1/2 of first month's rent for tenant placement upon signing a new lease, the fee doesn't apply on lease renewals. Hope this helps!
Ivan: this is very helpful. Thank you very much. -Alex
@Alexander Kappelman The rates can vary and placement fees can be up to one month's rent with a lower ongoing monthly fee, or a higher monthly fee with a lower placement fee. It really all depends on whether or not you willing to bank on placement fees or want a stronger recurring revenue stream to fund your business. @Ivan Sokolovich example is pretty fair for the market and can vary depending on town or company. My company owns Maine Properties and we have a variety of pricing structures in place.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing