A friend and I are under contract on a quadplex and in our proforma have assumed a 10% management fee. However, we are projecting rents of $1,125/unit or $4500/month. With a property that brings in so much income, do we have the potential to have a fee less than 10%? At what point will a manager consider taking less than 10%?
Additionally, we will also plan to have a $150/month utility fee as units 1/2 are submetered as one and 3/4 are submetered as one. Would the property management company take 10% of this as well?
Finally, what are the main things YOU look for when interviewing property managers?
@Caleb Heimsoth thanks Caleb. I agree I will not take a worse PM company that is doing 8% vs. 10%, but if I can get the best of both worlds, 2% is another $90/month. I agree on the utility, as someone that does have a submetered property wouldn't have to pay this fee. I guess when I interview PMs I will just have to see what the market is like!