Property Management Rates for MTR's

[Micah Uveges]

Can anyone tell me what the typical rates are for PM's that manage MTR's? I heard it could be as high as 25%!

[Bonnie Low]

Hi Micah. You're correct that management fees for an MTR can be in the 20-30% range. In my opinion, it isn't worth it because that's a lot - if not most - of the upside you're going to generate renting it as an MTR instead of an LTR. You might be able to find someone in this niche who really understands it and is willing to co-host. I have heard several people who are co-hosts offer their services for around 15%. But it's not that hard to manage an MTR, especially if you're renting for more than 30 days at a time. We average 13-week rentals so we're basically doing 4 lease ups and turns/year. It's not passive, but it's nowhere near as much work as an STR and I'd just as soon keep all my profits. If you're targeting a higher end traveler or something like insurance placements or corporate rentals you might get a larger spread and could justify using a PM for your MTR. Something else to consider is that if you ever decide to jump into STRs, it's good to have hands on experience with your lower risk MTR because many of the skills (treating it like a hospitality business, marketing, systems and turnovers) are very relevant. I would definitely recommend you give self managing a try before you consider turning your property over to a PM. At least you'll gain a lot of valuable information and decide whether or not it's or you. It's easy enough to hand it over if you decide it isn't.