How much to get paid for property management

[Sami Gren]

hi, I have several apartment buildings that I manage on my own, but recently a friend of mine asked me if he can invest with me,  so as a good friend I agreed he should put in half of the money for a residential apartment building.

but now I realized that since I will be the one managing the property, I will need to take a fee for myself, so I was wondering how it should work. .. from what I heard and I see online  anything between 5-12% of the gross rent, or $80-100 per unit, and all these prices are in in a very wide range.... so I would like to know what are the real average numbers.

also I see it can get very technical like when I renovate an apartment whether there are turnovers, late fees, renting out apartments etc. .

so I em wondering if someone can give me an exact run down exactly  how to work it out, thank you

(I know done wool ask what  I wanna include, but that's exactly my question what could/should I include etc. Etc.)

[PLEASE NOTE: WHEN I SAY 10% OBVIOUSLY I WILL ONLY TAKE 5% FROM MY FRIEND SINCE I AM A 50% PARTNER AND I AM ALSO PA YING HALF OF THE PM FEE....]

[Gregory H.]

@Sami Gren No need to get hostile with @Steve Hall, he was just offering a different perspective, albeit in a somewhat brusque tone, haha. Being able to justify why we do things allows us to consider whether it is the best way forward. We're all just trying to make money here in the best way possible for us personally.

As for your PM fee question, I charge 10% of gross rents to do full service management, which means that leasing is inclusive of that 10%. Typically if people/companies are charging less, like 8%, then leasing is a separate fee equal to one month's rent. I don't like that structure, as it incentivizes the PM to turn over tenants more frequently, and turnover leads to leasing, vacancy & repair costs.