management fees when calculating a rental property

[Jorge Hernandez]

Does anyone know what are the general management fees for new jersey. North and south. Thank you 

[Nathan Gesner]

Originally posted by @Jorge Hernandez:

Does anyone know what are the general management fees for new jersey. North and south. Thank you 

There is no "ordinary" so you really have to investigate the fees. Some will charge 10% but that includes everything. Some will charge 10% plus a leasing fee, lease renewal fee, markup on maintenance, etc. Others start with a flat fee of $100 per rental, or something to that effect. Some charge a setup fee, a minimum management fee even when the rental is empty, keep the late fees, keep the pet rent, etc. There are a lot of variables and you really have to investigate. I've seen property managers charge as little as 6% but after adding on all their extra fees they are actually over 10%. It's a great marketing scheme.

My recommendation? Make a quick spreadsheet (or even a piece of paper) and shop around. Talk to the PM and see what their fees - all of them. Then interview another and see what their fees are - all of them. Do this for at least three companies, then run your property through a few scenarios to see what it will cost you. What if you lease for one year and then have to place a new tenant? Two years? What if the Tenant signs a one-year lease but then leaves after six months? What if the Tenant quits paying after 9 months and has to be evicted?