Property Manager Discounts for Volume

[Steve Cook]

Hi BP!

I'm currently raising a small friends and family round of capital to purchase ~30 properties in Indianapolis metro area. One input into our models revolves around ladder discount for property management and I was wondering if there are any industry standards out there for other owners with larger SFH portfolios. For example,

Properties 1-5 - 10%

Properties 6-10 - 9%

Properties 11-15 - 8%

Properties 16-20 - 7%

Properties 20+ - 6%

Any examples would be very helpful.  

Happy investing!

Steve

@Clay Manship

[Andrew Johnson]

Steve Cook Alternative idea: Break your portfolio up among 3 property managers for the first year. See how they perform and then ask your preferred PM for a discount in year 2 to move to entire portfolio to them.