Management Fees for 50 unit

[Jenna Merryman]

I'm an investor and do 3rd party property management. I've focused on and have the most experience in single family management. I have a potential opportunity to take on management for a 50 unit new construction townhome complex. What is typical for management fees for this scale? What's usually included vs additional fees? 

I charge 10-12% for single family with leasing and maintenance coordination fees at the 10% end.

[Drew Sygit]

@Jaycee Greene I'll try to meet your expectations:)

@Jenna Merryman assuming these will be rentals (not condo HOA), the biggest change in management fees is triggered by onsite staffing. Used to be 20 units was the trigger point, but with technology now, it's around 50 units.

It also depends on owner expectations. We were managing a Class C 15 unit and had to part ways with the owner as they expected us to be onsite everyday for several hours! it didn't start out that way, which was reflected in our contractual management fees. Yet, the owner didn't wany to pay anything extra for their extra demands, which is why we parted ways.

If this complex will have onsite staff, you would hire & manage them, but their base pay would be typically charged directly to ownership. Your management fees would then be significantly lower than the standard 10-12% you've stated.
- Often onsite staff is provided discounted housing in one of the units. We do not recommend signing a lease at a discounted rate - what happens if they quit or get fired? Sign a lease at market rent, include a discount tied to employment.

If no onsite staffing, than the owner should be expecting your standard 10-12% to be discounted 25-35%.

You didn't mention Placement or Maintenance fees, but the owner will also be expecting discounted rates on those, given the number of units.