Market rate for full service property management company?

Question

Anyone have comps around Minneapolis for what PM companies are charging as full service? Small deals less than 20 units to manage.

Bill B. · Answer

@Michael King

No worries. In Vegas I pay a flat 8% and $300 placement fee (around 4-5 days rent, certainly less than a week.) I would never pay a month or more in finder’s fees except they guaranteed the rent for the length of the lease and this was an expensive out of state investment for me. Guaranteeing zero vacancy was worth if back then. And finding a tenant that’s coming up for early renewal after 7 years was a great catch. $4500 placement fee and $1080 in fees for the first year for $260k in rent works out to a good percentage. (Just above 2% of rent if they don’t renew.)

Jim Duffy · Answer

I use a company called Simply Residential Property Management for SFRs. They charge 10%. With respect to filling vacancies, they charge a $295 marketing fee rather than a full months rent.

I have talked with another company "the Property Management Guys" I think they are the same for single family, but I think they may charge a lower rate for a small multifamily. Hope that is helpful.

Alex Thomsen · Answer

I pay 1/2 month rent as a leasing fee the first month and then 8% per month for the rest of the lease period.

Michael King · Answer

@Bill Brandt I had Renters Warehouse for 5 properties. For me, they were one month for a 12 month lease, 2 months for 24 month lease and 3 months for 36 month lease. Plus the $89, plus account setup fees for LL and tenant, plus $7 a month (tenant paid) fee for the privilege of paying rent online. On a $3000 rental, not a terrible deal, but on my $1500 rentals, not a strong deal. For the fees and a myriad of bad customer service issues, I dumped those clowns and have not looked back.

Not trying to hijack the thread, 10% seems normal and you should shop around. Be wary of all kinds of BS fees. Remember that a PM company exists to make itself money, not you.

Wendy Man · Answer

That's a great rate no placement fee, 7% monthly, and $40/hour for maintenance not requiring license!

Brandon Hershey · Answer

nothing, included in their % fee.

Wendy Man · Answer

@Brandon Hershey what do you pay for placement?

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Brandon Hershey · Answer

Lion Rock, Flat 7% and $40/hour for maintenance not requiring license

Drew Sygit · Answer

@Chris F. would you hire the cheapest PMC that was a pain to deal with or pay a bit more for expertise and better service?

Amber Gonion · Answer

@Chris F. We charge 1/2 months rent for 1-year lease, $75/mo per unit management, and $60/hour for maintenance.

Market rate for full service property management company?

Market rate for full service property management company?

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