Rate to Pay Property Managers

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Rate to Pay Property Managers

Zander Kempf
Developer · Honolulu, HI · Member since 2018 · 111 posts · 93 votes

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?   

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y

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. :-). 

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  • Brian Dano
    Real Estate Agent · Bedford NH · Member since 2019 · 32 posts · 18 votes
    5y

    @Zander Kempf

    Usually I underwrite for 10% of the gross rental income. You can negotiate but 7-10% is what I see most often. 

    1Reply
  • Cooper Raines
    Real Estate Agent · CO · Member since 2020 · 29 posts · 18 votes
    5y

    I second Brian ^ seems to be common across the board

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    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. :-). 

    1Reply
  • Mike Street
    Rental Property Investor · Exeter, NH · Member since 2019 · 37 posts · 9 votes
    5y

    10% is pretty typical. 

    0Reply
  • Allan Smith
    Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    Plan on figuring 2 - 3% extra for the fees they add on. 

    0Reply
  • Stephen KeigheryBusiness Member
    Rental Property Investor · New Orleans, LA · Member since 2018 · 717 posts · 555 votes
    5y

    @Zander Kempf I pay 10% on my rentals and 60% of first months rent for placement.

    Home Buyer Louisiana4.855 Reviews
    WebsiteView Page
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  • Johnny QuilenderinoPro Member
    Real Estate Agent · Slidell, LA · Member since 2017 · 208 posts · 267 votes
    5y

    @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.

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  • Mailei MaloaPro Member
    Member since 2018 · 11 posts · 4 votes
    5y

    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. 

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  • Axel Ragnarsson
    Investor · Boston, MA · Member since 2016 · 245 posts · 436 votes
    5y

    @Zander Kempf

    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.

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  • Account Closed
    Investor · Leander, TX · Member since 2016 · 299 posts · 402 votes
    5y

    PM company in Alabama 8% (50% lease fee) $150 renewal (3 houses)

    PM company in Georgia 8% (60% lease fee) 7% renewal (2 houses)

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    Charge for maintenance? Major renovations?

    Charge for evictions?

    Charge for additional inspections?

    Charge to accompany insurer or appraiser?

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
    WebsiteView Page
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  • George P.
    Rental Property Investor · Massachusetts - New Hampshire · Member since 2017 · 12 posts · 3 votes
    5y

    Rochester NH

    We are currently paying 8% of rents, 75% placement fee and 0% markup on repairs.

    The previous management company charged 10% of rent, 100% placement and 10% markup.

    Don't just look at the % of rents though. Read the contract carefully and also question fees charged to the tenants.

    1Reply
  • Steve Y.
    Rental Property Investor · California, Southern NH · Member since 2018 · 42 posts · 15 votes
    5y

    Southborough County, NH. Paying 10% rent for monthly management, 1 month rent for placement, 50% of 1 month rent for 1st renewal (not thrilled about this) and 0% thereafter, no markup for repairs (I pay directly to vendors).

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