Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated almost 8 years ago on . Most recent reply

PM Charges 17% Flat Fee - C class Area
Interviewed a PM company. $75/door/mo flat fee. I'm evaluating an 8 unit, which would cost me $600/mo. No other extra charges (re-lease, etc.) but this certainly eats into my CF. They seem EXTREMELY thorough - Monthly reports by the 5th, 5 full-time maintenance staff, manage 300 units (too many??)
Still calling others in the area.
Thoughts?
Most Popular Reply

@Mark Douglas One other think to think about is that I know my PM get 10% based on collections. They don't collect and I don't get paid, then neither to they. I'd make sure that it's $75/door only when leased. The other thing to think about is that if the cost is per-door you're not going to have a PM with a financial incentive to optimize (read: increase) rent as that has no fiscal impact on them. Granted, if it's Section 8 tenants I'm not sure if that would really impact it at all. I know from forums (and my youth) that Section 8 pays the bulk of the rent. Now collecting that last __% from the tenant would have a (small) financial benefit for the PM that gets paid based on collections. That would have no financial impact on the flat-fee PM that you're talking to. No advocacy here (right or wrong) just pointing out some things to think through.