Rental Property Investor · Seattle · Member since 2019 · 3 posts · 1 vote
Due to frequent and increasingly unfriendly landlord tenant laws in my market, we're selling a property in Seattle to buy a multi-family in the Minneapolis market. Obviously I'm going to need property managers for an out of state location, but we've never had to deal with property managers before and have been very hands on with our rentals. What should I look for and how much should I expect to pay? I'm hearing that it should be 10% of the rent. Is that the average? What should I expect managers to do for me and what should I expect to keep myself in the loop on.
Saint Paul, MN · Member since 2018 · 189 posts · 107 votes
7y
@Grace W.- Fairly consistently I've seen the price of property management at about $99/month per unit if it's single family and about 1 month or half a months rent for placement. Make sure to ask about markups for repairs and be aware of the additional maintenance items in Minnesota compared to Seattle. Minnesota you'll deal a lot more with winter and what it'll do to your home so just make sure to budget for that. It was a bit more of a shock to me coming from Utah you have different things you have to work through.
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
7y
@Grace W. I don't use property managment so I can't quote you fees, but I do think there are varences depeding on how many units are under manangement. If I were buying out of state in this market I would use @Amber Gonion. Amber and her husband Rick can help you similar to a turn-key but without the mark up. Rick is excellent at finding cashflowing properties and Amber has had over 1,000 units under manangement at one time. They are awesome people and you should reach out to them.
Rental Property Investor · MN · Member since 2015 · 186 posts · 149 votes
7y
@Grace W. Minneapolis is not getting any better than Seattle. See: http://www.safeaffordablempls.org/wp-content/uploads/2019/06/Minneapolis-Screening-Criteria-Draft.pdf and http://www.safeaffordablempls.org/wp-content/uploads/2019/06/Minneapolis-Security-Deposits-Draft.pdf
Saint Paul, MN · Member since 2018 · 189 posts · 107 votes
7y
@Grace W.- Fairly consistently I've seen the price of property management at about $99/month per unit if it's single family and about 1 month or half a months rent for placement. Make sure to ask about markups for repairs and be aware of the additional maintenance items in Minnesota compared to Seattle. Minnesota you'll deal a lot more with winter and what it'll do to your home so just make sure to budget for that. It was a bit more of a shock to me coming from Utah you have different things you have to work through.
Real Estate Broker · Hugo, MN · Member since 2016 · 688 posts · 596 votes
7y
@Grace W. Management should end up being 8-9% of rent, but does not include maintenance. That would include monthly, renewals, filling units. That cost goes down with multiple unit properties.
Good management with save you money bad management will cost you more than a bad tenant.