What Fee Structure Do You Pay Your Property Manager?
I'm looking into PMs for a new area that I'm investing in from long distance. I've never used a PM before, so I wanted to compare notes with other investors who have used one. For instance, one PM I spoke to has the following fees:
50% of first month's rent to initialize tenant (+$50 just to draw up the lease)
8%/month rents collected
$150 flat for a renewal
This comes in at about 12.5% of gross rents in year one of a tenant's lease, and then probably closer to 9% in every year they renew. Does this seem high? How does this compare to what you have seen?