Property Management Fees for Mid-Term Rentals

Medium-Term Rentals
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Property Management Fees for Mid-Term Rentals

James Ohliger
New to Real Estate · Member since 2021 · 8 posts · 6 votes

I'm curious about people's experience with property management fees for mid-term rentals? Typical property management fees for long-term rentals are anywhere between 6-12% of rental income while fees for short-term rentals can range between 20-40% of income. Is it as simple as just finding a middle point between LTR and STR fees for an MTR? Like 10-20%? Or have people found success with other fee structures with their property management for their mid-term rentals? I'm an out-of-state investor so using property management in some fashion is a must.

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Conner Olsen
Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
4y
Quote from @James Ohliger:

I'm curious about people's experience with property management fees for mid-term rentals? Typical property management fees for long-term rentals are anywhere between 6-12% of rental income while fees for short-term rentals can range between 20-40% of income. Is it as simple as just finding a middle point between LTR and STR fees for an MTR? Like 10-20%? Or have people found success with other fee structures with their property management for their mid-term rentals? I'm an out-of-state investor so using property management in some fashion is a must.


I have a property management company for MTR and STR. STR management is 20% and MTR is 15% for us.

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  • Conner Olsen
    Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    4y
    Quote from @James Ohliger:

    I'm curious about people's experience with property management fees for mid-term rentals? Typical property management fees for long-term rentals are anywhere between 6-12% of rental income while fees for short-term rentals can range between 20-40% of income. Is it as simple as just finding a middle point between LTR and STR fees for an MTR? Like 10-20%? Or have people found success with other fee structures with their property management for their mid-term rentals? I'm an out-of-state investor so using property management in some fashion is a must.


    I have a property management company for MTR and STR. STR management is 20% and MTR is 15% for us.

    4Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    4y

    @James Ohliger what an owner is really doing when hiring a PMC is buying their expertise and time.

    You can think of expertise cost as a relatively fixed cost. Time would be the biggest variable.

    Assuming the same repeatable services will have to be provided for STR & MTR, that are not provided for LTR, the costs may not be that different.
    Taking care of lawns, monitoring & paying utilities, taking calls, etc.

    Some services will be the same, but vary in frequency: cleanings, resupplying amenities, responding to inquiries, bookings, granting access, etc.
    The more frequent the turnover, the more time required and the corresponding higher cost.

    There are also market variables, dependent on the property location.

    So, you are basically correct with your theory:)

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  • Allen DuanPro Member
    Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
    4y

    We manage mid term rentals in Los Angeles and 15% is our typical fee. We do 20-25% for short term rentals so you're on the right track with your thinking. It is much less work than STR since you can have turnovers only once every 1-3 months.

    Let me know if you have any other questions :)

    2Reply
  • Edgar Perez
    Kenosha, WI · Member since 2017 · 93 posts · 21 votes
    3y
    Quote from @Conner Olsen:
    Quote from @James Ohliger:

    I'm curious about people's experience with property management fees for mid-term rentals? Typical property management fees for long-term rentals are anywhere between 6-12% of rental income while fees for short-term rentals can range between 20-40% of income. Is it as simple as just finding a middle point between LTR and STR fees for an MTR? Like 10-20%? Or have people found success with other fee structures with their property management for their mid-term rentals? I'm an out-of-state investor so using property management in some fashion is a must.


    I have a property management company for MTR and STR. STR management is 20% and MTR is 15% for us.

    At 15% for MTR do you have a leasing/placement fee? What is common in your area for LTR fixed amount or percentage of first month rent? And then what do you do for MidTerm
    0Reply
  • Edgar Perez
    Kenosha, WI · Member since 2017 · 93 posts · 21 votes
    3y
    Quote from @Allen Duan:

    We manage mid term rentals in Los Angeles and 15% is our typical fee. We do 20-25% for short term rentals so you're on the right track with your thinking. It is much less work than STR since you can have turnovers only once every 1-3 months.

    Let me know if you have any other questions :)


     Allen same to you: At 15% for MTR do you have a leasing/placement fee? What is common in your area for LTR fixed amount or percentage of first month rent? And then what do you do for MidTerm

    0Reply
  • Conner Olsen
    Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    3y
    Quote from @Edgar Perez:
    Quote from @Conner Olsen:
    Quote from @James Ohliger:

    I'm curious about people's experience with property management fees for mid-term rentals? Typical property management fees for long-term rentals are anywhere between 6-12% of rental income while fees for short-term rentals can range between 20-40% of income. Is it as simple as just finding a middle point between LTR and STR fees for an MTR? Like 10-20%? Or have people found success with other fee structures with their property management for their mid-term rentals? I'm an out-of-state investor so using property management in some fashion is a must.


    I have a property management company for MTR and STR. STR management is 20% and MTR is 15% for us.

    At 15% for MTR do you have a leasing/placement fee? What is common in your area for LTR fixed amount or percentage of first month rent? And then what do you do for MidTerm

    No placement fee. LTR is 10% in Austin. We do 15% of rental revenue.

    0Reply
  • Allen DuanPro Member
    Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
    3y
    Quote from @Edgar Perez:
    Quote from @Allen Duan:

    We manage mid term rentals in Los Angeles and 15% is our typical fee. We do 20-25% for short term rentals so you're on the right track with your thinking. It is much less work than STR since you can have turnovers only once every 1-3 months.

    Let me know if you have any other questions :)


     Allen same to you: At 15% for MTR do you have a leasing/placement fee? What is common in your area for LTR fixed amount or percentage of first month rent? And then what do you do for MidTerm


     Hi Edgar, no placement for us either. Long term management fees in Los Angeles seem to be around 10%. I always make it a point to emphasize to our new potential owners that they will earn more having us manage their MTR than if they self managed as a LTR. So they get the best of both worlds, extra earnings without needing to be a landlord.

    1Reply
  • Julian Broyles
    Phoenix, AZ · Member since 2021 · 73 posts · 17 votes
    2y
    Quote from @Allen Duan:

    We manage mid term rentals in Los Angeles and 15% is our typical fee. We do 20-25% for short term rentals so you're on the right track with your thinking. It is much less work than STR since you can have turnovers only once every 1-3 months.

    Let me know if you have any other questions :)

    Hey there brother! Do you guys work with MTR in Phoenix and surrounding Metro area Arizona? And what are the longest terms least or rent?
    0Reply
  • Allen DuanPro Member
    Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
    2y
    Quote from @Julian Broyles:
    Quote from @Allen Duan:

    We manage mid term rentals in Los Angeles and 15% is our typical fee. We do 20-25% for short term rentals so you're on the right track with your thinking. It is much less work than STR since you can have turnovers only once every 1-3 months.

    Let me know if you have any other questions :)

    Hey there brother! Do you guys work with MTR in Phoenix and surrounding Metro area Arizona? And what are the longest terms least or rent?

     Hey Julian! We don't serve the Phoenix area as of now. But if you're in need of a quality MTR manager, I can tap into my network and find you someone. Are you asking about longest MTR stays? We've had one for over a year, but that's very rare. Most MTR bookings are no more than 6 months.

    0Reply
  • Julian Broyles
    Phoenix, AZ · Member since 2021 · 73 posts · 17 votes
    2y

    That would be terrific. Do you know if there's a company that rents by the room for midterms? I've only spoken with two companies that work with housing for one person and the property that I'm looking to obtain is a three bed

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