What does your property management company charge you?

Rental Property Investor · Charlotte, NC · Member since 2015 · 72 posts · 30 votes

What does your Property Management company charge you? Do they mark up the invoice if something happens such as a rehab?

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Tony F.

Investor · California, CA · Member since 2016 · 117 posts · 26 votes

@Jenna Lee This first months rent at release plus 10% makes management total 18.3% if you lose a tenant after a year on a 1k$/month unit... I don’t see how you can make this pencil with these fees. Unless your tenants last 5 years. But regardless there are plenty of residential managers working for 10% on single fam and 8% on mf so why would you settle for that. Seems more common on commercial props.

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Casey Powers
Las Vegas, NV · Member since 2018 · 405 posts · 474 votes
7y
1 month rent for a lease renewal is steep. Never heard of a PM charging that much for a renewal.
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Greg K.
Rental Property Investor · Tampa, FL · Member since 2015 · 38 posts · 31 votes
7y
@Scott Rubzin $250 tenant placement/lease negotiation fee and 10% monthly management fee. They are allowed to repair up to $300 monthly but they generally ask first; I have to maintain a $500 repair fund. This is my first manager, but came highly regarded by family and I haven’t been disappointed. I think you get what you pay for, so not trying to trip over dollars to pick up cents by trying to drive their fee down. Also, this is in a small market in Florida.
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Scott Rubzin
OP
Rental Property Investor · Charlotte, NC · Member since 2015 · 72 posts · 30 votes
7y
@Greg Kapourellos sounds like you found someone great to manage your properties I’ve heard great things about the Tampa market.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Casey Powers:

1 month rent for a lease renewal is steep. Never heard of a PM charging that much for a renewal.
renewal fees i see are anywhere from 200.00 to half months rent not seen a full months rent.
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Greg K.
Rental Property Investor · Tampa, FL · Member since 2015 · 38 posts · 31 votes
7y
@Scott Rubzin yeah I think so, but it’s actually in the Panhandle. We’ll see how it goes here...will start buying SFHs in the Tampa area.
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Warren Fanaken
Toronto, ON · Member since 2018 · 17 posts · 3 votes
7y
Can the expenses associated with your property management company all be written off when filling your taxes?
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Jenna Lee
Rental Property Investor · Seattle, WA · Member since 2018 · 66 posts · 21 votes
7y
@Tony F. Thanks Tom for the input. Her fees are definitely on the high side. I’ve had pms quote me 8% plus first month rent and half of rent when they renew. . I purchased a property with tenant and pm in place. Bad shape in very ghetto neighborhood. It was a nightmare trying to purchase in the area due to competition (it’s getting gentrified at the moment so investors are flocking the area) and realtors and investors that I’ve dealt with in the area were very unethical (not all, but most) . I honestly didn’t shop for pms I didn’t want to switch PMs on my tenant since they are probably used to her. And fortunately she’s been great! I know her fees are very high, but because my construction costs has been so low (way lower than what I would have been able to pull through) I felt it was worth the money. . The tenant I acquired was a nightmare tenant ( and she also didn’t place that tenant either) so maybe when we get a good tenant in place this time, where her work becomes lucrative (we’ve both been loosing money since they don’t get paid if the tenant doesn’t pay) I can ask for better deal, but now she’s really been working for free. Thanks to the horrible renter.
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Jenna Lee
Rental Property Investor · Seattle, WA · Member since 2018 · 66 posts · 21 votes
7y
@Scott Rubzin Scott my property is in Atlanta. Everyone’s feed back about the fees being high is absolutely true, but it’s been worth it for me because the area my property is in is extremely ghetto..... very bad neighborhood and she’s been doing great job getting great contractors to redo my house at a very low cost..... (definitely better than what I would have been able to negotiate for)
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Jenna Lee
Rental Property Investor · Seattle, WA · Member since 2018 · 66 posts · 21 votes
7y
@Anthony Wick yes it’s horribly high..... but the neighborhood where my rental is like down in the GETTO haha~~~
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Jenna Lee
Rental Property Investor · Seattle, WA · Member since 2018 · 66 posts · 21 votes
7y
@Warren Fanaken Ofcourse!! Item an expense....
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Eric Carr
Real Estate Broker · Los Angeles, CA · Member since 2017 · 658 posts · 293 votes
7y
We charge 4.9% on rents paid, no markup on repairs - but we are in LA, which is a high priced market
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
7y
Originally posted by @Mark S.:
@Scott Rubzin 10% on SFRs. 1/2 months rent for tenant replacement after year 1. $200 annual lease renewal. I don’t believe there are markups on repairs, but possibly a trip fee - all waived in year 1 under their in-house turnkey warranty.
Has to be a profit made on repairs. Wouldn't make any sense to offer that product free of charge. The management fee margins are far too thin to be the only profit producer for a company that hopes to stay in business.
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Mark S.Pro Member
Rental Property Investor · KY · Member since 2013 · 1k+ posts · 539 votes
7y
They manage over 2,100 SFRs and have been in business for over 16 years.
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James Canoy
Kingston, NY · Member since 2017 · 252 posts · 138 votes
7y
@Jared Decker Which company in NY?
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David Edwards
Architect · Seattle, WA · Member since 2017 · 160 posts · 81 votes
7y
10% on all collections (fine print that i missed when i read the original contract). I generally think its well worth the 10% to not have to stress about chasing tenants for $$ or responding to maintenance requests. That first month when they've taken in the securtrity deposits and cleaning fees and whatnot are something you should account for.
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Jared DeckerPro Member
Property Manager · Tampa Bay, FL · Member since 2017 · 46 posts · 29 votes
7y
@Greg Kapourellos feel free to get in touch when you do decide to invest in Tampa. My company specializes in SFH and multiplexes under 100 units.
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Jared DeckerPro Member
Property Manager · Tampa Bay, FL · Member since 2017 · 46 posts · 29 votes
7y
@James Canoy in Binghamton NY, Empire Property Management.
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Greg K.
Rental Property Investor · Tampa, FL · Member since 2015 · 38 posts · 31 votes
7y
Originally posted by @Jared Decker:
@Greg Kapourellos feel free to get in touch when you do decide to invest in Tampa. My company specializes in SFH and multiplexes under 100 units.
Will do, thanks!
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Casey Powers
Las Vegas, NV · Member since 2018 · 405 posts · 474 votes
7y
Originally posted by @Mark S.:

They manage over 2,100 SFRs and have been in business for over 16 years.
I'd be willing to bet they own a maintenance company or have in-house maintenance. That's how many larger PM companies do it.
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Casey Powers
Las Vegas, NV · Member since 2018 · 405 posts · 474 votes
7y
Originally posted by @Jay Hinrichs:

Originally posted by @Casey Powers:
1 month rent for a lease renewal is steep. Never heard of a PM charging that much for a renewal.
renewal fees i see are anywhere from 200.00 to half months rent not seen a full months rent.
I charge $150.
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Orrett LawrencePro Member
Rental Property Investor · Fayetteville, NC · Member since 2018 · 56 posts · 13 votes
7y
@Scott Rubzin I have property in CO and FL both charges 10%. No up charge for maintenance.
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Orrett LawrencePro Member
Rental Property Investor · Fayetteville, NC · Member since 2018 · 56 posts · 13 votes
7y
@Greg M. I agree with Greg, I full months rent is just too much. Plus and another full months upon renewal of lease.
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Mark S.Pro Member
Rental Property Investor · KY · Member since 2013 · 1k+ posts · 539 votes
7y
They do have in-house property management alongside their turnkey operation where they’re essentially flipping homes to investors and making money on the front end, too
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
7y
Originally posted by @Mark S.:

They manage over 2,100 SFRs and have been in business for over 16 years.
Nobody would run maintenance on that many houses for free. It's an incredible amount of infastructure to build a maintenance company that large. Were talking many full time employees & trucks doing around $5M or more in annual maintenance repairs. Huge undertaking, profit has to be built into it to be worth doing.
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Jason Woods
Rental Property Investor · Bellevue, WA · Member since 2016 · 35 posts · 11 votes
7y
Any recommendations for good PMs in the Seattle/Bellevue area?
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