Which Property Management Fee Would You Choose?

[Trevor Haasch]

Working to start a new Property Management Company. Our goal is to align our fees to be in the best interest of the owners. We are also property owners ourselves. Although leasing fees are common in our industry, I'm not a big fan of them as they give incentive to the property manager to re-lease the property annually and from a budget standpoint one months rent is a big gulp to swallow at once especially if the owners have a mortgage on the property. I would like to structure our fees to be competitive yet easier on the property owners as well. My only concern is if an owner sees a higher priced fee per month compared to our competitors they might not be comparing apples to apples. 

Option 1

Flat Fee (ALL INCLUSIVE INCLUDING LEASING FEES) Only paid if rent is received

• Single Family, Town-Home, Condo, and Lofts: $125.00/month Flat Fee
• Duplex: $115.00/month, per unit
• Tri-Plex: $110.00/month, per unit
• QUAD: $105.00/month, per unit
• 5-10 Units: As low as $95.00/month, per unit
• 11-30 Units: As low as $85.00/month, per unit
• 31+ Units: As low as $75.00/month, per unit

Option 2

12%-15% of Monthly Collected Rent (ALL INCLUSIVE INCLUDING LEASING FEES) Only paid if rent is received

Option 3 

Traditional setup

8% of Monthly Collected Rent

1 Month Leasing Fee - Paid when new tenant moves in

1/2 Month Renewal Fee - Paid if lease is renewed

If you were to hire a property manager, which fee structure would you like better?

Does anyone else have any other suggestions that might better align our fee structure to the owners interest and yet remain profitable.