Property Management Fees

[Shannon Berry]

I am wanting to enter the REI world but will not have time or skills to self manage. Looking for a property manager and think I have found one but wanted to make sure his fees are in line with the norm:

9% of all rent collected.
$100 placement fee when securing a new tenant.
10% markup on all vendor contracted maintenance and repairs

Does these numbers sound like they are in the ballpark for Midwest/Indiana?
 

[Thomas Talbert]

Quote from @Christian Styles:

This seems to be in the ballpark, but I would have a few follow up questions,

 Is this their entire fee structure? 

Typically tenant placement is the first month of rent so 100 bucks seems a little on the low side, what are they doing to advertise your property that they are able to do it for only 100 bucks?

I know we typically charge 5 percent of vendor maintenance and repairs but 10 may be the norm in your area. (I'm in Cleveland, OH) 

I'm happy to look over your PM agreement if you want an extra set of eyes, always seem to find something of value in those! 

Can you tell us a little about the property they would be managing too? That information is helpful when trying to asses fees. 

Also, Congratulations on entering the wonderful world of REI! Happy to have you here!

 Agreed $100 does seem cheap for a placement fee but 10% is the market down in Austin. I would ask what all goes into their placement fee because they may do the bear minimum and the marketing for the property isn't that great of that $100 is true.