23% management fee

[Angu Krishna]

Hi Everyone,

I recently ventured into real estate investing and purchased my first property a few months ago. As my current property management contract is up for renewal and also my tenants leases is ending by end of this month, I reached out to them for new offers. To my surprise, they provided a quote for a 23% management fee per month rent, which includes a one-year rent guarantee (regardless of whether tenants pay or not) and a maintenance credit of 2.5k per year.

I must admit, I was taken aback by the figure. It seems quite high to me, especially considering I'm still relatively new to this field. I wanted to seek some advice and opinions from this community before making a decision.

Do you think the management fee and the additional services provided justify the cost? Have any of you encountered similar situations in your real estate investing journey? Any insights or experiences you could share would be greatly appreciated.

Thank you in advance for your help.