Real Estate Team & Property Manager Fees

[Jon Kelly]

Hello, 

I currently own 1 rental property, which I've had for 6 months. I'm continuing to look for additional investment properties. My first question is, what does a typical real estate team look like for those that own 3+ rental properties? Do I need to assemble investors, a property manager, a lawyer, a contractor to work on repairs, etc? I know each of those would come at a cost, but I'm just wondering what others have done to address these needs. 

Second question: What is a typical property manager fee structure? If I invest in another state I will likely hire a property manager. Are property managers typically paid a salary, a certain % of rental income, or some other payment structure? 

Any guidance is appreciated, thanks!

Jon 

[Dawn Brenengen]

@Jon Kelly  You should have a resource for all the parts that go into real estate investing, but that doesn't necessarily mean you need everyone all at once.  Start getting recommendations for the various trades from others and build a list of people you can contact for various needs.  As you use the people over time, you'll learn who you like to do business with.

PM fees vary, but it's usually a percentage of rent collected.  I charge 8%.  Often, there is a fee to place tenants (I charge 1/2 of a month's rent) and sometimes there are other fees involved like a maintenance fee, trip charges, etc.  I don't charge any of those fees.  You'll want to interview a few people and get a good handle of their fee structure.