PM Fees and Bulk Discounts

[Chad Blessing]

Hello,

I'm working up a proposal to manage about 10 units...(8 duplex units + 2 other homes)...all in my area in NW Austin.  Average rent is about $1,300.  My normal fee for one unit is 8%.  Anyone out there have experience providing bulk discounts for a similar range of units?  If so, how did you structure your agreement?

Thanks!

[Joe G.]

@Chad Blessing

I have a friend that received a discount in exchange for agreeing to exclusive / right of first refusal for future units in his portfolio. I think it also locked him into using the PM for add on lines of business like using their repair services or something similar.

This shows that you value the owner's business, but you want them to show loyalty in exchange for holding them in place. 

As a marketing guy (a short time a number of year ago), I might suggest that you make some copy print with 3 or 4 different levels of "partner" or similar deals. Regular, good, better, best. This would be around the better level with best having the owner 100% hands off with notifications and auto reports. Maybe have a minimum of doors for each level with the discount in place based on your scale of economy. 

Good Luck!