Property Manager with affordable tenant placement in Minneapolis

[Forrest Holden]

I used to own 4 rentals in west Texas.  My property manager only charged $300 for tenant placement.  I understand that I probably can't get that rate in Minneapolis, but I honestly feel that a full months rent for tenant placement is highway robbery.  Does anyone know of any managers or management companies that are actually reasonably priced in the Metro?  If not I may just have to start a property management firm and crush the competition.

[James Hamling]

@Forrest Holden I find it interesting that you used the phrase ".... reasonably priced". 

The "average" monthly rent in my managed portfolio is ~$2,400 mnth, that's $28,800 revenue in a 12 mnth lease. How "reasonable" does $300 expense to get $28,800 seem? That's a 96X multiplier, seems a bit more "ridiculous" than "reasonable" to myself. 

To be more accurate, the "average" being 3yr lease, WITH a automatic annual rent increase (because we are pro's at this and actually know what were doing", it's more accurate to say $90,792.00 gross revenues for..... $300.00....... 

To reiterate what @Kevin Sobilo stated, to provide Property Management services the MINIMUM requirement is to be a R.E. Broker, which requires to carry specific insurance policies, offices, software systems, licensure expenses, continuing ed expenses, and this just get's on the ability to exist, that's it, just to exist.     On top of this if your half-azz decent you have; tens of thousands in annual legal fee's for annual contract reviews and refinements per what has come to pass in the year, compliance staff to keep on top of all the various compliance changes in every municipality of overlapping control (city, county, state, federal). 

And than we get into the "fun" things like how to operate a website that drives millions of traffic weekly, so one can actually FIND a tenant, the various software systems to pre-screen persons, schedule showings, operate lease signings, and on and on and on. 

There is a reason why the fee's are rather universal at what they are, and why those who come out with a "discount" service, rather universally go under in a matter of months. 

A complaint that $2,400 fee for; all the marketing, advertising, showings, contracts and contract signings, background checks, inspections etc etc etc not to mention ADVISORY. To say this is "ridiculous" fee in exchange for $28,800 - $90,792, that statement stands out as the most "ridiculous" item to myself. Yeah, I'd say $2,400 for all that is WAYyyyy "reasonable" if not well UNDER-priced.