Do I need a property manager/company

[Deep Patel]

I'm looking to buy two duplex properties in another state, Cleveland Ohio, and I wanted to see if this is something I would need a property manager to mange. The properties already have tenants, and one of the properties is Section 8 approved which is what I would like to do to all the units. I'm wondering if I need a property manger or a property management company to manage these long term rentals. If so, how much should I expect to pay? I've researched and saw that people have been quoting about a month's rent for management fees for a year, is this accurate? Would love some help here

[Travis Biziorek]

Hey Deep, self-managing out of state can be done. 

I do it.

I live in California but have 12-doors in Detroit. That said, I have a very strong network on the ground.

With one tenant being on Section 8 already it will make things easier for you if you wanted to go the self-management route. Then it's just about networking a bit, or calling local service providers when there are maintenance requests.

Anyway, nobody seems to be answering your question about actual PM costs in the area.

In a market like Cleveland you're likely to see three main costs:

1) Tenant placement fee. This is usually equal to the first month's rent.

2) A percentage of the gross monthly rents (usually 10% but you may be able to negotiate to 8%)

3) A lease renewal fee. Some folks will try and take 50% of the monthly rent for that. I think that's obscene. A nominal fee of $150 or so is annoying but reasonable.

Hope that helps!