Average management fees in Newark for a 7 unit

[Gal Alberman]

Hey all,

I'm thinking about buying a 7 unit in the 07111 zip, (1-2 bedrooms mix) turn key multifamily that will gross around 75k a year. 

I don't intend to menage it myself. 

how much should I expect in property management for this area? how difficult will it be to find a decent management in this area? 

[Moises Mari]

@Gal Alberman, anywhere 7-10% is a fair game, anyone trying to charge on the lower end is tough to believe they would provide the best possible service.  I own investment properties in Newark as well as Essex, Bergen, Hudson County, New Jersey and honestly, it would be difficult to manage for less than 10%.  Beware that although some companies will offer you a lower percentage they will most likely get kickbacks from any repairs performed in your property.  I have many contractor contacts that I work closely in the area and many tell me that the property managers usually asks for a cut of their bill when and request to present a bigger invoice to the owner. 

It is very difficult to find an honest individual that will do things right and really look out for your interest.  I currently manage some properties for close friends but my time is somewhat limited at the moment, otherwise I would probably offer my services.  I personally like to keep my properties in perfect shape, so I can definitely understand the need of finding a great property management that will look out for your interest like it's your own. 

Perhaps if you find a smaller company, ask if the manager owns their own investment properties, I have found that when manager or owners own their own investments they tend to relate a little more and care more about their clients investments as well. 

Here are some questions I would ask a property manager:
1) Do you management your own investments?
2) How many rentals do you manage?
3) What experience does your owner have in managing rentals?
3) Are you a current real estate investor in your area?
4) Under what conditions can I cancel my management contract?
5) Do you charge any fees if the property is vacant?
6) Do you collect rents and are you able to direct deposit to owners?
7) Do you get kickbacks from contractors/Do you mark up repairs?
8) Do I have to list my property with you if I choose to sell my property? 

These are just a few I would ask when looking.  Good luck and feel free to reach out if you have any questions, I have experience investing in North Jersey.