Hi I am looking at purchasing a potential 6 unit property with 10 storage units about and hour away from me. I don’t wanna be up there all the time and am wondering what the cost for a property manager usually is and also where to find one?
@Jack Yvars, had someone ask me yesterday if I would manage their 10 unit MF (I have a management company), I told him that it would be 10% or $1500 monthly whichever is greater.
This would equate to roughly 60% of his free cash flow so there's no way he could make it work.
For any legit and experienced MF management company there will be a minimum which almost always will be non workable in the numbers especially if you have investors.
Probably more to your question though, maybe you can find one of the residents that you would like and trust to help with basics for a few hundred a month?
Approximately 10% of gross rents. I usually ask a real estate agent in that area for recommendations. You can also Google for one in that area or ask here on BP.
There are a couple ways you can go with it depending on how much management you want out of your property management company. Also geographic area plays a role.
An "all-in" property manager is going to cost ~10 to 12% of gross rents which @David de Luna pointed out. They typically pay the bills, execute repairs, deal with the tenants, etc... Pretty much everything but pay the mortgage.
An "al-la-cart" property manager is going to cost 5-8% but they normally charge additional fees for each additional activity they do. Examples would be doing an eviction, handing a repair, etc...
Commercial storage and commercial in general is 4-5% + cost of salaried workers. Since you only have 10 storage units and you have residential units I wouldn't say your property fits the bill for that type but Its still good to know.
If you happen to be in NJ I can possibly refer you to a good PM.
@Jack Yvars Hello Jack. There are several companies out there that you can utilize to find property managers. Usually they charge 10% or a fee around $200. Please do not quote me on the numbers.
@Jack Yvars, had someone ask me yesterday if I would manage their 10 unit MF (I have a management company), I told him that it would be 10% or $1500 monthly whichever is greater.
This would equate to roughly 60% of his free cash flow so there's no way he could make it work.
For any legit and experienced MF management company there will be a minimum which almost always will be non workable in the numbers especially if you have investors.
Probably more to your question though, maybe you can find one of the residents that you would like and trust to help with basics for a few hundred a month?
@Jack Yvars make sure you call a few companies to get management quotes. For smaller size properties they may charge more or might have flat fees if they drive to the property.