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Updated about 3 years ago,
First time property manager shopping (long term rental)
I am buying my first rental property and am looking into hiring a property manager. The property is a 4-units, 2bed-1bath multifamily, located in a more depressed area of the town, so many of the owners in that area self-manage and does month-to-month with relatively bad tenants. I am looking at doing year leases only.
Here's the kicker though, the property manager I found (not connected to any company, but is a realtor) has some odd fees that don't seem great to me. He says he charges 10%, half of the first month's rent, and an extra fee if we use his maintenance teams.
This doesn't make me feel very comfortable because, in my opinion, this would incentivize him to find bad tenants on purpose so he can receive more commission.
What are your thoughts? are these pretty normal fees, should I come to him with a counter offer (if so, what are your thoughts) or should I drop him and look for someone else?