Investor · Concord, CA · Member since 2016 · 21 posts · 11 votes
Hey guys,
I'm looking for recommendations for a property managers in/near St. Petersburg Florida. What is the current standard for management fees -- thought it was 10%. Got a fee schedule from one manager that is 12% + $150 activation fee + 1st Month's rent + 50% of 1st month's rent for lease renewal fee every year + $75 monthly vacancy fee between tenants + $300 Reserve account for maintenance. Too much or is this what I should expect? I'm new to this. Thanks in advance for your input and recommendations.
The benchmark in Pinellas/Hillsborough, etc. is right around 10% per anti-trust laws, there is not, nor will there ever be a "standard".
Our fees are a $250 advertising fee to procure a tenant, a $100 document fee to sign a lease, and 10% of what we collect with a $75/mo. minimum (i.e. if you have a $500/mo. property, it's flat $75 when we collect. No fees are charged if we don't collect.
Before you select management, always, always, ALWAYS interview three companies.
Best of luck, and if we can be of service, don't hesitate to reach out.
I'm the Branch Manager for ONEprop Property Management in Tampa and I assist with operations throughout Central Florida. I have done several extensive competitive analysis of residential property management companies in Florida. I have seen several trends in pricing:
Pricing:
- The so called "standard" rate is typically 10% management fee, renewal fee 25%, and a 100% first month rent leasing fee. (renewal fee is 50/50)
- Some property management companies have flat fee pricing. There are pros and cons to this type of pricing depending on the size of your portfolio and other factors. These are the companies that may promote a $99 per month management fee. One thing to look out for is the add-on or service fees. I have seen a lot of "flat fee" companies charge smaller monthly rates ,but have a lot hidden fees.
- Other property management companies have variable pricing. These companies typically have a benchmark rates that are adjusted based on the size of a portfolio and monthly rents. This variable pricing is especially beneficial with investors with large portfolios. This pricing strategy can also be beneficial because it allows for flexibility and both parties can agree to terms that work for them.
Reserve for Maintenance
- The reserve for maintenance is not standard ,but it is beneficial. This allows the PM to approve repairs under $300. This is nice because the PM will not have to bother you every time there is a small maintenance issue.
Recommendation
- I would recommending interviewing your Property Management Companies before signing up. I believe BP has a post about a list of questions to ask your PM before hiring them.
- I would also recommend having a strategy and goals planned out for your property before choosing a company. This is important if you plan on having the property long term, 1-3% different in fees can add up over 5+ years. Also determine if your property is in an area with potentially high turnover, this will affect your vacancy fee, leasing fee, and turnover costs.
Conclusion
Every property management company is different, from the levels of services they provide, to their fees structures. As they say "cheap usually isn't good and good usually isn't cheap". Please let me know if you have any additional questions. We can definitely help you with all your property management needs. If you are interest please private message me for more information.
The benchmark in Pinellas/Hillsborough, etc. is right around 10% per anti-trust laws, there is not, nor will there ever be a "standard".
Our fees are a $250 advertising fee to procure a tenant, a $100 document fee to sign a lease, and 10% of what we collect with a $75/mo. minimum (i.e. if you have a $500/mo. property, it's flat $75 when we collect. No fees are charged if we don't collect.
Before you select management, always, always, ALWAYS interview three companies.
Best of luck, and if we can be of service, don't hesitate to reach out.
I agree that getting several bids would be a good idea. I typically like to get references from both tenants and owners. Look for someone that has been in business for a while. We use Holland Associates for properties in the St Peterburg area.
I agree that getting several bids would be a good idea. I typically like to get references from both tenants and owners. Look for someone that has been in business for a while. We use Holland Associates for properties in the St Peterburg area.