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Updated almost 3 years ago on . Most recent reply

User Stats

12
Posts
9
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Renier Walters
  • New to Real Estate
  • Colorado Springs, CO
9
Votes |
12
Posts

Management Fees Question

Renier Walters
  • New to Real Estate
  • Colorado Springs, CO
Posted

I bought a duplex in Aug 2021.  One of the units has been vacant all this time (currently March 2022) with a tenant about to move in after the management company's construction crew completed their renovations.  In the management agreement it states:   
Monthly Management Fee: 10% of Charged Rents or a Minimum fee of $69 per unit (Whichever is greater).

In addition to charging me $69 for the occupied unit (Rental Income is $650)  they are charging me another $69 for the vacant unit.  Is this normal practice or am I being taken advantage of?

Most Popular Reply

User Stats

433
Posts
283
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Matt Ziegler
  • Rental Property Investor
  • Colorado Springs, CO
283
Votes |
433
Posts
Matt Ziegler
  • Rental Property Investor
  • Colorado Springs, CO
Replied

Reiner, the bigger question is, why is the unit still vacant.

In todays market, a properly priced rental goes very quickly.

What is the scope of work the PM is doing to the unit?

August 21-March 22 is a long time that is a lot of lost income.

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