Is this fee reasonable for a property manager in Columbus?

Question

Hello BP,

I have a PM I’m planning on working with. Im willing to pay more to work with this person as my experience so far has been very positive. I would really appreciate the opinions of local investors, as to the fees being charged.

-75$/ unit flat fee

-first months rent for a new lease

-200$ lease renewal

-any rehabs are cost plus 15%

-one half of all late fees

-60$ for each eviction delivered

-100$ pet fee goes to pm, any additional fees go to owner

Is this all pretty typical for Columbus?

Also I am thinking about requesting a term along the lines of, If the unit turns over within the first 9months of a new tenant, the new lease fee is to be waived. Is this fair ?

Trent Ecklar · Answer

Seems like they have a fee for everything! The one that gets me the most is 15% on top of rehabs. Might be time to start my own property management team here in Columbus!

Give Cheryl at Heart & Homes a call.

Henry Lazerow · Answer

Them collecting the pet fee is weird and not the normal. $75 OK. As long as you can shop for rehab quotes yourself and don't need to hire PM its OK if 15% markup on little repairs.

Jonathan Styer · Answer

Overall this is pretty in line with what people should expect to pay in Columbus. I see a little bit of nickel and diming going on here but not extraordinary. @Trent Ecklar is right, the 15% markup on renovations could be pretty costly depending on what is needed. Also, why is the PM getting any pet fee? Just my thoughts.

Isaac Lane · Answer

@Gurjot Grewal - The fees vary among PM companies but the fees you have listed seem to be reasonable for the Columbus area. I would recommend to always negotiate more preferable terms, the new lease waiver within the first 9 months is reasonable.

Jimmy Lieu · Answer

I pay 8% property management fee for my investment properties. The average PM rate here in Columbus Ohio is probably 8-10% from what I can tell. I have an amazing property manager and my brokerage provides an in-house service for clients from renovations to property management. As a local investor and agent, I woould love to answer any questions you have!

Joshua Dawson · Answer

15% markup seems high. Pet fee should go to you. It’s your risk, not theirs.

Donald Brooks · Answer

Absolute insanity. You’ll make over market by a VC backed str player with zero risk as their VC backed. Soda Stays is a good one. They’ll manage your property for free and pay you over market. Connor group also has an option but hard to get into.

Eliott Elias · Answer

Why are you willing to pay more? Not sure what the $75 flat fee is, what are the rents?

Drew Sygit · Answer

Everyone has advice, but few the actuall knowledge to give their advice any value.

All these fees are entirely reasonable for great service!

Everyone that thinks they are high, will hire PMC's at lower costs and get poor service, then bash all property managers.

Allen Tracy · Answer

Hey Gurjot, if that's a really solid PM it could be worth it.  Here's what I'm at for C class properties and management.

7% with $55/unit minimum

First month's rent for new lease

No least renewal fee

All work is marked up 10% (bills paid, service calls, rehabs, everything!)

Evictions range from $400-$600

Not sure on pet fees

Is this fee reasonable for a property manager in Columbus?

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