Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
3y
Hi Micah. You're correct that management fees for an MTR can be in the 20-30% range. In my opinion, it isn't worth it because that's a lot - if not most - of the upside you're going to generate renting it as an MTR instead of an LTR. You might be able to find someone in this niche who really understands it and is willing to co-host. I have heard several people who are co-hosts offer their services for around 15%. But it's not that hard to manage an MTR, especially if you're renting for more than 30 days at a time. We average 13-week rentals so we're basically doing 4 lease ups and turns/year. It's not passive, but it's nowhere near as much work as an STR and I'd just as soon keep all my profits. If you're targeting a higher end traveler or something like insurance placements or corporate rentals you might get a larger spread and could justify using a PM for your MTR. Something else to consider is that if you ever decide to jump into STRs, it's good to have hands on experience with your lower risk MTR because many of the skills (treating it like a hospitality business, marketing, systems and turnovers) are very relevant. I would definitely recommend you give self managing a try before you consider turning your property over to a PM. At least you'll gain a lot of valuable information and decide whether or not it's or you. It's easy enough to hand it over if you decide it isn't.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
3y
Quote from @Account Closed:
Can anyone tell me what the typical rates are for PM's that manage MTR's? I heard it could be as high as 25%!
San Diego rates: STR 25% most common (as low as 18%). MTR 15% (some as low as 10%). LTR 6% to 8% (includes virtually all Upcharges like tenant placement/re-sign).
Recognize San Diego rents are higher than most (virtually all) markets). those percents are a percentage of that high rent.
I would expect the percentages to be higher in Cleveland.
@Bonnie Low do you think MTR management is possible to do if I don't live in the USA? obviously I'd need to manage a handyman and cleaner as I understand but anything else I'm not taking into account?
You'd also want to consider tenant communication and troubleshooting. I believe you can manage an MTR from anywhere, just don't forget to factor in time differences. If your tenant / guest has an issue and tries to call or text you, you'll want to respond in a timely manner. Plenty of MTR pros travel the world and self manage their properties...