Looking for a handful of Property Management firms in the Columbus Market to review/interview and wanted to know the average % costs for mgmt services as well as who covers what (PM/Owner) in repairs.
So many different options. I would say typical is 8%-12%. Some have hidden fees like full month lease up fees and release up fees if tenants renew their lease. I'd ask them for a historical P&L of someone that has operated a property with them and show them all of the fees that that person has incurred over the trailing 24-36 months. Lots of great property managers out there. Depends on the area. I'd find someone local. In columbus, there is a huge difference between a duplex on OSU campus and a 4 unit in Whitehall. 2 different property mangers in my opinion.
Hi @BJ Everson ,
I agree with Robert that the typical for Columbus is around 8%-12%.
Columbus is such a diverse market, so the property management company you choose will depend mostly on the area you are looking to manage. Properties in A and B areas will most likely not be managed by the same companies in C and below areas.
Please let me know if you have any questions!
Thanks @Sarah Wheeler and @Robert Ellis , I figured that was the % range. But what makes the % higher/lower in our area? I'd assume something like an OSU rental would be closer to 12%, but would a lower income area be lower or higher % seeing how the level of rent is less but most likely a harder tenant base? Also, either of you have any names you'd recommend exploring in our city? Thanks!
The range you will find in Columbus is anywhere from $45/mo flat-rate to nearly $250/mo or more for managing high-end property (if you hire a percentage-based manager). And yes, be sure to calculate the total cost of management which includes setup fees, leasing fees, leasing renewal fees, markups on maintenance, etc. I wouldn't necessarily call these fees "hidden" because all the managers I know of in Columbus (and I know most of them) do disclose them in multiple ways including on the property management agreement.
However, the cost of management is probably the least important part of what they do. A single decision by a property management company (on something like leasing or maintenance) can either cost you tens of thousands or save you the same. So I wouldn't fixate on trying to save $20 or $30 dollars a month. Instead focus on the experience, process/systems, and reputation of the property management company you are hiring.
You'll also want to make sure they are a good fit for what you are looking for. Some property managers are very flexible, will do pretty much whatever you ask, call you all the time with updates, etc. They are more like your assistant. Other property managers take a systematic approach and make owning the property a hands-off experience. They take the lead and treat the property as if it was their own investment. You will rarely hear from them because they are busy managing your property and making decisions on your behalf. This is great if you just don't want to worry about what's going on and want someone to handle everything. Both approaches are valid and usually you (as the owner) will prefer one approach over another, so try to find out which one the companies you are looking at subscribe to.