I have 15 units (and counting) across a small handful of properties in New Hampshire. What is a reasonable rate to expect for property management? Both monthly rate and lease up fee?
Usually I underwrite for 10% of the gross rental income. You can negotiate but 7-10% is what I see most often.
I second Brian ^ seems to be common across the board
It’s probably a very local question. I pay 8% plus a $300 placement commission. Oh yeah. And a stoopid $125 re-leasing fee that makes mad just typing. :-).
10% is pretty typical.
Plan on figuring 2 - 3% extra for the fees they add on.
@Zander Kempf I pay 10% on my rentals and 60% of first months rent for placement.
@Zander Kempf I own 27 units, plan on 8 percent and then about 2 or 3 percent on things like smoke detectors certs and such.
I pay 10% monthly and first months rent on new lease, 10% on re-leasing fee. I think once you get over 10 units managed by them you have more power to negotiate.
Our PM company charges 8% for management and 75% of a month’s rent to place a tenant. This is roughly what I see in NH, although maybe a bit cheaper (I see 9-10% typically). Let me know if you’d like an intro.