Property Management Fee
Hi everyone,
I am very new in this real estate investing and have few questions in regards to the property management fees and need BiggerPockets community to guide me through this investing journey.
Since I'm a beginner in this real estate rental and don't have time to manage the property myself, I hired a local property manager to manage my investment property (I'm in GA).
My property manager is taking the one-time first month of total rental income as a commission, an additional 12% as a property reserve, and charges about 4% as a management fee every month.
In my opinion, I think taking the one whole month rental income as a "commission" sounds a bit too high, and wasn't sure if this practice is common in this industry. Also, if anyone could give me some information or advice on what the industry norm is for the property management fee or how I can collect the data I would greatly appreciate it. Thank you!