Property Managers a rip off in Birmingham?

Question

I have been looking off and on at property in Birmingham and my sisters best friend lives there. She swears up and down that property managers in Birmingham charge a flat fee of $300 and 20% of the rents. I have never heard of anything so absurd but a google search only takes you so far and Biggerpockets being a community I thought I would ask here first.

Am I out of my mind to think of buying and renting out property in Birmingham AL

Jay Hinrichs · Answer

depends on where the property is... I can say if its war zone I would want 50% of rent to manage it.

if its nice A and B class then 10% is standard  with 1/2 month or full month placement fee

15 to 20% mark up on repairs etc..

War zone props to me is asset management its not property management .the tenant base will kill you over time financially.

Wade Alderson · Answer

Thank you everyone for the feedback. I thought she was full of bad gas, but I wanted to be respectful, and after spending an hour on Google I could not find anyone saying they charged a flat $300 and 20% but then I got to thinking if I was one of those snake sales men would I tell people i would over charge them on line? So I came here to ask. And you guys have been GREAT! This is why I love Biggerpockets and I want to thank all of you for your impute and thank those of you who gave me a good laugh by your witty remarks.

Spencer Sutton · Answer

Hey Wade,

There are plenty of property managers in Birmingham who charge between 8-10%. Our company (gkhouses) just switched to a flat fee with three different options.

The bigger issue is not your PM, but the neighborhoods where you buy rentals. We encourage any/all investors to do a lot of homework before buying in Birmingham.

Best of luck!

Anthony Jensen · Answer

It is not 20%. I have seen 10%.

Kevin Auyong · Answer

Total nonsense. I have rentals in Bhm and  pay 10% of rents and 1/2 month tenant finders fee.

You should just google property managers and cal them yourself

William Murrell · Answer

20% of the rent?  I find that hard to believe.  Around here (which I know is entirely different) they charge 12% as an off the street rate, and the rate comes down the more properties you have.  I'd call the companies you find in a google search and ask them.

Property Managers a rip off in Birmingham?

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