Property Management Expenses

[Chauncy Gray]

Hello,

I want to address the following questions to investors who have hired property managers in the past. 

1. I have heard that property managers charge fees for handling a property that goes vacant. May I ask as to what this fee covers? Right now, I am having trouble understanding the purpose of the additional fee since the property manager has already been hired for managing the property. 

2. I also learned that some charge fees for renewing leases (up to 50% of one month's rent), and that some do this up to twice per year on a property? How is that so, and what would be the reason for these charges? 

3. What are some other expenses that new investors should be aware of when hiring a property manger? 

4. What is the property manager's business/income model?

V/R,

Chauncy


 

[Kyle Myers]

@James Wise

I don’t think he’s asking because he feels like he’s being taken advantage of or doesn’t want to pay fees. Just wants to know the different ways PM make their money and what is normal to pay for vs being scammed.

If I have a $500 hamburger and $10 hamburger on the menu your not going to want to know why?