Thoughts on property management fees after 26 units

[Ken Primrose]

What are expectations for property management fees when you have 26 units under a single property management co.

-I’m in the Midwest (Oklahoma) 

-in a small town (30,000) and 

-am paying 10%. But when you factor in 65% on first month of new lease and 50% on lease renewals it’s probably closer to 14% of gross rents. 

-gross rents are about $18,000/month

I really like these guys but any feedback on realistic expectations- probably about to attempt to negotiate an 8% gross rents and leave the new lease and renewals as is. 

Any thoughts?

[Nathan Gesner]

Quote from @Ken Primrose:

I'm a PM in a small town of $10,000 and my prices are similar. Renewal fee is a rip-off? Well, my renewal fee covers inspections, guaranteed price increases, and other services that aren't included in your one-paragraph renewal. If I charge $150 for a renewal and the owner gets an increase of $360, then I would say it's working out.

There's value in protecting your property, income stream, time, and sanity. If they're doing it right, compensate them for it. If they don't make enough money to pay for employees, software, and some profit on top then it won't be long before they decide to get a job that doesn't involve putting up with your tenants so you can get wealthy while they do all the work and live a mediocre life.

I'm building wealth with my PM company, but most of my Landlords are doing better because they hired me instead of the wanna-be down the street that charges 8% but doesn't know what they're doing.