Property Management Fees

[Mike W.]

I'm purchasing a multi-family (2 unit) home out-of-state and working a property management company that will act as dual agent and the property manager post purchase. Where do I have opportunities to negotiate a better rate? Rent on the property will be approx $1200 per mo.

- For small multi-unit they charge a management fee of $150 or 10% of the rent per month, whichever is greater. 

- They collect a fee of one months rent upon renting the home, $250 upon the signing of a 12 month renewal commitment from an existing tenant.