My first rental

3 Replies

I'm getting ready to rent a house that didn't sell. I will be utilizing a property management company as I am in the service. This company is a well known realty company and the broker I purchased the house from (who I trust), voucher for the property manager. His fee is 50% of the first months rent and 10% thereafter. Is this a standard or decent sounding rate?

Hello Ethan Jones, I am a realtor in the Minneapolis area and have a couple rental properties myself. I have helped clients line up property management companies with their investment properties and typically 50% of the first month's rent and then a small monthly fee ($50/month) will get you a pretty good property management company in my market. I can't speak directly to your market, but 10% every month seems high.

@Ethan Jones Yes.  Often, the fee is a full month's rent to get the place rented.  

Check the fine print regarding how they can spend your reserve account.  If you can't take calls regarding maintenance calls/costs, do you have someone who can approve of maintenance costs before the PM just charges your account?  If so, that would help to avoid PM nightmares regarding over-charging for maintenance, etc.

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