Property Management Fees

[Laura Heckenberg]

After investing in duplexes and triplexes, I'm moving in 'apartment' building investments. I'm in contract on a 6 unit apartment building and received the actual expenses today. While comparing the expenses presented in the OM and the actual expenses, I realized the seller didn't include the property management fees in the OM. Is this typical?

I ask because I'm going to go back to the seller about some other expenses that were understated and want to know ahead of time if this was perhaps an oversight on their part or pretty typical.

Thanks!

[Kim Meredith Hampton]

@Laura Heckenberg on small multi, a lot of the owners live close by and manage themselves, so a lot of time you won’t see management fees, and low maintenance expenses because they repair a lot themselves or use unlicensed contractors for repairs. 
I usually see in the OM the proforma numbers have a line item for management. 
Other items to make note of are taxes will be different, and a rule of thumb to use for total expenses should be between 35-50% of annual gross. If you see a lot lower than that, they are usually not right. 
Banks typically use that 35-38% for expenses, 5% on vacancy, 5% on capx, etc... 

Hope this helps