Going Rate for Property Managers

[Ashley Ernst]

What's the going rate for property managers? I've always assumed it was 8-10%, but i'm now seeing prices for 1 month rent plus 10-12% per month.  Is this normal for the indy market?

[Michael Smythe]

Those are normal fees.

There are also several companies now offering flat fee management services. Two challenges to be aware of:

1) Many charge the flat fee even when the property is vacant and a tenant not paying rent.
2) For this reason, the flat fee model works best on Class A rentals, maybe Class B, but NOT Class C or D (this is our opinion, from figuring out what went wrong with owners that have hired us to replace their flat fee PMC)

You didn't ask about maintenance fees, which are often the biggest money maker for PMC's. Actual costs and markups are deliberately hidden from owners. The most common model is owner is charged $x per hour for maintenance. Maybe half of that goes to the worker + their taxes. Some goes to insurance, vehicles, equipment, etc - but at least 30% usually is profit.