Property Management Pricing Structure

[Nicholas Hill]

I've done the self managing long enough, and I'm looking to pass on my properties to a property manager. Interviewed a few and no one really stood out quality wise, but price wise Knox is definitely below others and I like the flat rate pricing structure. 

The companies that charge per new tenant worry me a little as they get paid more for turnover, and landlords know, multi-year long term tenants are what really helps out a lot, and I don't like the idea of myself and the property manager potentially having different goals over this. Is this a needless worry?

I've seen PropertyCare pop up in my searches, any other suggestions, and what is everyone paying for property management? Seems like the 8-10% suggested in some of the BP media might be a little bit of a dream world here in Houston. 

Thanks,

-Nick

[Cody L.]

Man, doing fee based property management of 1-off single family homes seems like a nightmare.  You charge even 10% and that seems "high" but that might be $100/month.  A few calls in a month and boom -- you're upside down.

And I always thought 1 month rent for tenant placement is high but remember PM's will post to the MLS, and 1/2 that fee will go to the tenant agent. So that leaves 1/2 month for the management company. That might seem like a lot but there are several hours spent to do up a new lease and deal with all the crap of a new tenant.

So in reality, they don't want to turn tenants any more than they do.  They want what you want:  A quite tenant who will just pay rent and not be a problem.