PM Charges 17% Flat Fee - C class Area

[Mark Douglas]

Interviewed a PM company.  $75/door/mo flat fee.  I'm evaluating an 8 unit, which would cost me $600/mo.   No other extra charges (re-lease, etc.) but this certainly eats into my CF.  They seem EXTREMELY thorough - Monthly reports by the 5th, 5 full-time maintenance staff, manage 300 units (too many??)

Still calling others in the area.  

Thoughts?

[Andrew Johnson]

@Mark Douglas One other think to think about is that I know my PM get 10% based on collections.  They don't collect and I don't get paid, then neither to they.  I'd make sure that it's $75/door only when leased.  The other thing to think about is that if the cost is per-door you're not going to have a PM with a financial incentive to optimize (read: increase) rent as that has no fiscal impact on them.  Granted, if it's Section 8 tenants I'm not sure if that would really impact it at all.  I know from forums (and my youth) that Section 8 pays the bulk of the rent.  Now collecting that last __% from the tenant would have a (small) financial benefit for the PM that gets paid based on collections.  That would have no financial impact on the flat-fee PM that you're talking to.  No advocacy here (right or wrong) just pointing out some things to think through.