Property management fee lowered?

[Kyle Nigro]

General property management fee question. I never look to undercut anyone and their business. Just asking if it is common for the management fee to decrease when you start adding properties into your portfolio under the same PM. How many properties are appropriate to ask for a 1% decrease (ex. From 10% to 9%)

[Michael S.]

I'll provide a contrarian opinion just for the sake of discussion:

1.  I value what my property manager brings to the table - finding quality tenants that pay and don't trash my rentals, no price gouging on repairs, responds to my calls and emails.  I am not willing to sour that relationship over a measly 1%.  

2.  If your margins are that tight that an extra 1% makes a real difference, then the problem was the deal on the property, your rental rate and/or your financing;  the issue is not your property manager.  1% on one of our rentals is $10 to 15/month.  This is irrelevant to our bottom line;  I can skip going out for lunch one day a month to make this back.  One bad tenant or property manager can cost you thousands very quickly.