Property Management best rate (for SFR)

5 Replies

In the case that you have your own Property Management entity set-up to service your own rental SFR properties. What is the best rate to charge yourself? Same as any outsource company (i.e. 8%-10%) or do you charge less than the market rate?

Why would you charge yourself a mgmt fee? If your not going to run a normal mgmt company then I dont see the point. If your trying to create expenses for yourself through an LLC that is your property mgmt company, I personally think it is pointless to do this. To form a company, Pay yearly LLC renewal fees and also file tax returns, I dont see how this is worth it unless I am missing something.

Medium buymemphisnow stacksCurt Davis, Buy Memphis Now | [email protected] | 605‑310‑7929 | http://www.BuyMemphisNow.com

Property management in my area is 10%. I believe you should charge yourself 10%, if it's norm in your area because you will have to work and spend time to perform it and time is money. 

In Illinois, you don't have to file separate taxes for LLC, if it's only one member. Yes, it's just fine to have your LLC and pay yourself. LLC is great way to own real estate, especially series LLC.

Medium decent properties logo jpeg  1 James Syed, Decent Properties, LLC | [email protected] | 618‑406‑9775 | http://www.decentproperties.com

Thank you @Curt Davis , I'm looking to understand the best and right way to structure your own entities (SFR properties and the property management co.).

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