Property Manager Fee structure

[Audrey C.]

In my search for a PM for my LTR (which I may turn into a STR at some point) Wondering if this fee/billing structure is reasonable and/or ordinary. The company I'm talking to now has this structure in lieu of a standard % of the rental income:

monthly retainer $250 for priority response/availability
turnover inspection $180/turnover
maintenance labor rate $85
materials billed at cost +20%
sub coordination cost + 20%

Anyone with experience both ways and have a preference to either structure?

[Charles Clark]

@Audrey C.

This fee structure isn’t unusual, but it really depends on the level of service they provide. A flat retainer can work well if your rent is higher or if you want guaranteed availability, but the add-on costs can add up—especially the 20% on materials and subs. I’d compare their total estimated yearly cost to a standard % model to see which makes more financial sense for your property.