Property Management Fees

[Robert T.]

Hi, 

I just bought my first rental property  last month.  I live in NY and my property is in FL so the property will be run by a property manager.  

I just received the property management agreement and the cost of property management is a little higher then I expected.  Could somebody  please tell me if the fees of this deal are reasonable.

Property location: Ocala FL

Expected Rent rate: $900

Fee for managing tenant relations: %10 of gross lease value

Fee for managing  property: $100 per month.

First  months rent goes to property manager.  Also, 1st month rent of renewal's goes to property manager.

So then this would mean $190 every month goes to my property manager for a property that rents for $900.  Is it normally that high for Ocala FL?  

Thanks

[Jackie Lange]

These property management fees are ridiculous.

You should contact Michael Bielon.  He does Master Leasing in that area and does not  charge any property managment fees.  Hi web site is OnTimeRents dot com

or contact DavidTilney dot com for other recommendations in that area.  David trains people to do Master Leasing and has been doing it for more than 30 years. 

PM fees are another good reason to not buy outside your own market.  Those initial fees are just the beginning.  If you need an air conditioner repaired or a roof replaced, a PM will tack on 10-20% of the cost of the repair .. just for making the phone call.  Beware of additional fees for sending you accounting every month, etc 

Someone who does master leasing does not play those games.