Do you negotiate your property mgr fee?

Question

James Wise · Answer

I see no reason why a property management company would be willing to give you a discount. You are working with the smallest portfolio possible. Doesn't make sense.

Mike McCarthy · Answer

@Connie Chan you’re paying for them to be available every day handling issues. Some months you or they will have no work, that’s just the way it is.

The alternative is to find a local handyman and use them as your boots on the ground. Someone still has to answer the phone/text when there are problems though, so it’s certainly still work.

Account Closed · Answer

Easier to negotiate when you try to leave one PM for another PM with better rates.

They really wanted to keep my business so they were willing to match the other PM and came down from 10 to 8% and also came down on the lease and renewal fees.

Kenny Dahill · Answer

@Connie Chan, sounds best for you to continue self-managing.  Tenants pay on-time; no maintenance issues in years.  That's the dream.

To answer your question, yes you can negotiate with PM's.  Although it always depends on your portfolio and needs.  Doubtful with only one property for them to take a price reduction.  However, you can consider negotiating their reserves amount and minimum maintenance threshold.

Dena Puliatti · Answer

10% is industry standard.  There are property managers out there that will negotiate a fee.  I don't.  You get what you pay for.  If you have an experienced property manager with multiple units, then they know who to call to get repairs done quickly.  If you're not paying your property manager with 10% of the rent, most likely they will mark up repair costs to make it worth their while.

May Castillo · Answer

10% is pretty standard, and I would say fair too. You are paying them to have the peace of mind that if something happens, someone (other than you) will be able to handle it, and handle it right away. Paying them will save your own time so you can focus in something else. If it's just one house and you want to save the money maybe you can just self-manage it and get an agreement with a contractor (or handyman) to handle every repair or emergency. I know someone who has a contractor on call, and if there is an emergency the tenant calls the contractor directly so they can send someone. Just an idea.

Theresa Harris · Answer

@Connie Chan  You can ask what services they offer.  If you just want them to place a tenant and not collect the rent every month or do service calls, they probably have an option for that.

Eric Mayer · Answer

Discounts come with multiple doors. I do have discounts from both my property managers. 10% is good for 1 rental. Surprised they aren’t charging you 12%.

Do you negotiate your property mgr fee?

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