Property Management Expenses

[Peter Li]

What would be a typical management fee that a RE management firm can charge on managing your property?  I know most would charge certain % on the initial rental (setting up with a new tenant) and another % for the renewal of the lease.  I know there really isn't any typical arrangement but I just want to see what are some of the general practices are out there in the market.  TIA.

[Benjamin Riehle]

Hey Peter,

I have a management team in Tucson, AZ. we charge 10% (8% for owners of 4+ properties) plus $25 per month per unit. We do not charge any other fees. No leasing fee to the owner, no vacancy fee, trip charge fee, ect. The $25 per month is our way of being fully transparent with our owners. We run a business and offer a high level of service and need to be profitable, however we found most management companies like to hide misc. fees that they bill to their owners. Our fee structure is designed to be fully transparent with our owners so they know exactly what they are getting. 

Best,