Property Management Fee???

[Sean Wilt]

So considering a major life move :).  I'm new at this STVR biz (about 2 years) but feel I have a good handle on what it takes to make money in this space managing our 2 properties on our own.   As we continue to build our own portfolio of properties, I am considering opening my own property management company in my core market.

Based on my experience and study, I feel the local property management complanies are not that sophisticated and I have access to deed records and other resources that I can get to the owners of over 1500 properties on the platforms pretty easily.  Of course, I would need to energize homeowners of my value... not asking for advice necessarily there.  Just wondering what a typical fee would be for high level property management that would include:

• Listing property on AirBnb, HomeAway, and Corporate Website
• Manage calendar and booking process from start to end
• Manage cleaning and basic maintenance (lawn/small repair)
• Pay State sales tax and local hotel/motel tax on behalf of owner
• Supply basic supplies (paper towels/toilet paper/coffee/etc.)

If I provide for a reasonable profit margin, I am thinking 40% of gross revenue would cover all of the above.  An example may look like this:

Total Revenue   $50,000

Cleaning Fees   $4,000

Taxes                  $6,500

Platform Fees   $1,500

Suppplies           $1,000

Maintenance     $2,000

Profit                   $5,000

Total Fees           $20,000   (40%)

Am I including too much? (paying taxes for instance).    Should I pass through supplies and lawn maintenance? Am I missing anything?  Is my profit margin off?  Would I be competitive?  I know I need to do more research, just asking for a quick view and comments if any to see if I'm on the right track.

[Paul Sandhu]

^^^ 60%