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Updated over 9 years ago,
Property Management Fee Question
Hey everyone,
I am analyzing a deal right now for a 26 unit apartment complex. I know on larger properties (50+ units) it is common to have an onsite property manager and the fees are between 4-6% plus payroll costs for the onsite manager. For a smaller complex like this, should I budget for payroll expense as well? The current owner self-manages the property so I cannot gauge a true management cost. Typically I would factor in $900/door for payroll cost plus a management fee. Any thoughts on management fee % and payroll expense would be greatly appreciated.
Mike