Property management fees

[Andrew Caldieraro]

Hello,  

I'm looking over PM fees, and I was hoping I could get some advice. I'm new in the game, and I believe this PM company will be a good one based on reviews and attention to details when meeting with them several times.  This is one area that I don't want to be "cheap" on.  They do negotiate, but I'm curious what your thoughts are with these fees:

-Filling a vacant unit:  $500 if rent is btw $400-500, 100% of one month's rent if rent is btw $501-749, $750 if rent is btw $750-1000, 75% of one month's rent if rent is $1000+.  

-$100 Lease renewal fee.

-$20/month for a unit not leased by them (for example, if it is an offline unit that I am not having them rent).

-10% of general contractor fees for 3rd party repairs (HVAC, appliances, plumbing, electrical, roofing, etc.).

-They have fees for additional services that would apply, if wanted (law care, snow removal, etc.)

-Monthly management fee 10%

My property rents out for around $1000 per unit/month.  Based on this listed fee schedule, what would you try to negotiate on?  Any other thoughts or questions you'd have for the PM company?

[Steve Vaughan]

I actually like the fill fee variations.  Shows they are trying to accommodate with different scenarios.  A flat 1 months rent would probably cost more, especially if your rents are above $1000.

I'm more interested in tenant quality so I'd ask the fee to be spread out over the tenancy. You get paid as long as I do. Tenant selection is the most important part in the LL biz I have found. Incentivise them to select well.

The 10% repair/contractor override always makes me flinch.  I can see that with a $200 repair, but don't want to incentivise them to order the most expensive work. Maybe propose a $25 min, then something that pays them if they SAVE you money.  

These types of conflicts have kept me self-managing all these years.