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Updated almost 10 years ago,
How important are fees to you when shopping for a PM?
Hi,
I'm a co-owner of a full service real estate brokerage in Tucson, AZ, and we have a property management division that is in the growth phase. We are at approx 270 units managed, with 100+ owners. We don't really take on the "slumlord" types of properties. We try to focus on quality rentals that attract good tenants.
We started out as a "low-fee" type of company that focused on trying to eliminate a lot of the fees that are common in the PM industry, such as marketing fee, placement fees, turnover fees, inspection fees, etc. However, we are finding that with PM being such a labor intensive industry, there's no way for us to provide excellent service without increasing our payroll and resource expenses.
My questions is this: How big of a factor are fees to a prospective property owner that's shopping around for property management services? Are low fees the number one factor that you would look at, or do you guys think owners would be willing to pay fees in exchange for a company that has a strong structure and business processes, and performance, which can be validated through online reviews, client testimonials & references, etc?
Before we make a big pivot in our pricing and business model, I was hoping to get some feedback from the BP community. Thank you!