Property Manager fees for Higher End SFH Rentals? Handy man?

[Mitch Polatin]

Hello. We rent out a SFH home in Los Angeles for $15k a month. The management fee is 10% of rent. It's steep considering the home is a multi million dollar home where very little goes wrong. Sometimes there is a minor leak or something but nothing major. And if it is major we replace it.

Now thinking of buying and renting out another $1M plus home.

We are new to this and obviously playing the asset accumulation game but still making some cash flow.

Does anyone with higher end SFH properties like this, just have a handyman on call and deal with issues that way? It seems there's a better way than paying 10%. But maybe I'm naïve.

We aren’t in the area and I’m not handy.

Thanks.

[Peter Tverdov]

That is an interesting one for sure. My only issue would be that if someone is paying $15,000 a month in rent they are likely expecting an immaculate place that has everything perfect with nothing ever going wrong. I don't think 10% is the answer but not sure 5% is either. I damn sure wouldn't put that investment in the hands of a handyman to be on call. 

FWIW we manage one property for nearly $8000 a month but it's full of students, we charge 8%.