Property Management Fee???
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.