What's the average price for a property management company?

Question

Do you sign a one year agreement?

How do they pay you your earnings?

Dale Miller · Answer

@CJ M. 6-10% That is what I will keep in mind when looking around. Thanks!

Account Closed · Answer

@Dale Miller

6-10% from what I've seen

Michael Noto · Answer

Loaded question. I would reach out to specific PMs from the area that the home in located in to get a better idea. Fees for PMs vary widely based on the market. Beware of going with the ones with the lowest fees.

Laticia Braxton · Answer

10% is pretty standard and most agreements are for one year.  When interviewing PM companies (be sure to interview several), ask if they can send you a direct deposit each month instead of a check, it will make your life a lot easier.  You should also request management reports each month, so you are able to keep track of the expenditures and monitor what they are doing.  There are a lot of horror stories out here regarding landlords who hired the wrong PM and found out too late that they were being scammed.  Best of luck to you!

Dale Miller · Answer

@Aaron K Around 10% Is what I was quoted. I think I might use a property management company and see how it goes ya know. I'm still trying to purchase my first rental. And things are moving at a snails pace. There's so much to learn and so many questions to ask. Not sure If I can come up with more time to manage than I have with work and kids. Thanks for your reply!

Aaron K. · Answer

@Dale Miller depends on location and rental prices in the area but most common is 10% in lower priced markets plus fees to find a tenant when it goes vacant, some companies have more fees than that.  Yes you sign a property management agreement, usually the term is 1 year and then it transitions to month to month, but if you are a big enough pain in their butt you'll probably get out if you really had to.  They can mail you a check or send you a direct deposit, your call.