Thoughts on Which Property Management to Use

12 Replies

Hi all,

After much legwork, I have narrowed down my choice for a property management for a 5-unit property in Pilsen to two.  I am having a hard time deciding and would appreciated your thoughts. 

Management A - they charge 5% of gross rent, no charge on service calls (but I still have to pay for parts and/or a professional's labor if so needed), and charge one month rent if they have to rent out a vacant unit.

Management B - 7% of gross rent, $75 for each service call, and no charge for renting out an empty unit. 

My building is currently fully rented, tenants are a mix of college students and young professionals. 

I talked to both companies and check out their reference, both are more than solid. If all things bring equal, which one do you think is better for my bottom line?

@Unai La Salle, here is my thought process.... given most of the your tenants are students and young professionals, I assume tenant turn-over is high. My instinct tells me to go with 2nd. Just my 2 cents.  

I wouldn't pay someone who is managing my apartments a full month's rent to lease vacant units, that just incentivizes high turnover which is bad for you. 

I typically charge 5% of gross for something stabilized like that and only bill for service calls that incur actual work. I only charge to rent out aparments during winter months (November 1st through March 1st) and even then it's only 1/2 months rent. If you are managing it properly there shouldn't be any turnover during those months anyhow.

@Joe H.

Do you manage the Pilsen area by any chance?  If so, please let me know.

Thanks.

@Joe H.

What city neighborhoods do you manage property in?

Originally posted by @Unai La Salle :

@Joe H.

Do you manage the Pilsen area by any chance?  If so, please let me know.

Thanks.

Yes, I amanage and own quite a bit in Pilsen and Little Village. That's my favorite side of town.

Originally posted by @Jerry N. :

@Joe H.

What city neighborhoods do you manage property in?

 I manage primarily in the NW and SW sides with my heaviest concentrations in Logan Square and Avondale on the NW side and West Pilsen and Little Village on the SE side.

I do have some properties on the South, West and North sides, but Ive contracted on the SW and NW sides because I think they have the most long term potential for both me and my clients.

I'd say the second one looks more attractive to me. Some other things to keep in mind, do they charge a marketing fee? Do they charge a lease renewal fee?  If you pay a full months rent to lease a unit is that months management fee included? What is the time duration between the tenants payment and the payment to you, I've seen anywhere from 2 weeks to over a month. 

@Joe H. Can you PM us?  Would like to talk to you about your PM services.  Something near Logan Square.  Thanks.

duplicate post.  Mod, please remove.

Originally posted by @Joe H. :
Originally posted by @Jerry N.:

@Joe H.

What city neighborhoods do you manage property in?

 I manage primarily in the NW and SW sides with my heaviest concentrations in Logan Square and Avondale on the NW side and West Pilsen and Little Village on the SE side.

I do have some properties on the South, West and North sides, but Ive contracted on the SW and NW sides because I think they have the most long term potential for both me and my clients.

Hey Joe, if you are still accepting clients.  Please PM me with your company's info.  Thanks.

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