What are typical fees for a 22 unit property mgmt?

[Joe Fairless]

Hi everyone, 

What have you seen as a typical fee structure for a professional property mgmt company to manage a 22 unit? 

[Joel Owens]

Yeah that 6% rate you do not see typically on one building of that size. With scale of other properties you have given them it might make sense.

Phillip Bashaw

"they have really high occupancy rates."

Check their operating statements for the last 2 years. You want to see high occupancy and very low turnover. Current high occupancy means nothing. They could have ran deals to slam tenants in and have poor screening. As the market gets saturated with supply in the coming years makes sure to use realistic projections such as 10% vacancy and flat rents to 2%. 4% rent growth each year and 3% vacancy is a bubble right now and not sustainable historically over the long term with cycles.