When to ask for a decrease in PM cost?

2 Replies

Hello BP,

My wife and I currently have 4 doors/3 properties with a PM who we really like. We are currently paying 10%/mo. 

We are under contract on a 4 unit property. I am wondering when is it appropriate to ask for a reduction in monthly % paid to our PM? Is 8 units enough? Total should be about 6K in gross rents when they are all occupied. 

Should I ask for a reduced rate on the new ones? Reduced rate on all of them or wait until we have more properties?

Thanks in advance.

Doesn't hurt to ask, some PMs have a policy on this, if they do have a policy it is usually 5 units and will get you 1%  Some PMs never give a discount, but as most are small businesses they may be willing to negotiate.  Just tread carefully because you do like them.

@Aaron K.

Thanks for the thoughts. I would rather keep a strong relationship with them, then bicker about pennies but I would hate to leave money on the table.