Rates for property management? Growing quickly, need a little advice...

[Micah Truman]

Hello All,

Time to jump in and start posting - I have been lurking around the forums for quite some time.

A bit of background - I bought my first duplex a little less than 3 years ago, and have since bought 2 more duplexes, and just closed on a 7-plex. All are in the Seattle area. I has been pretty amazing to see how the business is growing, and I am starting to realize that I am going to be focusing on multi-units pretty intensively over the next few years.

Which leads to my question - what is an acceptable rate to pay a property manager? I am currently working with a very capable person who was inexperienced when she first started managing my first duplex, but has grown very capable now that we have just closed on the 4th property. To date, I have been paying her by the hour, but am realizing that this is going to quickly become way too expensive.

I am thinking about offering her 6% of gross rents per month, and a 70% commission on filling vacant units (i.e. if a $1,000 unit is filled by her, she would receive a $700 bonus). Is this percentage fair, given that she is now managing 13 units for me?

Any advice people have would be deeply appreciated.

Thanks all!