MTR property management

[Miguel Del Mazo]

My wife and I have been blessed to have 4 units that we own which we MTR and another unit that we arbitrage as an MTR. We got started during COVID. That has given us some insight into our local market (a small city of 100k in the South). In the process of growing, we've reached out to existing STRs and LTRs to see if anyone was willing to do another arbitrage deal as we save up for our next purchase. 

During this, we've made some friends with folks who, rather than allow us to rent their unit, would prefer that we manage their property for a fee. In our state, property management must be done by a licensed real estate agent. Neither of us are agents, but it would certainly be doable to get a license.

My question: what kind of fee structure would you be willing to pay to an MTR property manager, or if you are already an MTR property manager, what fees do you charge? LTR management in our area is usually 50%-100% of the first month's rent with an ongoing 8-12% of rent every month. STR rates can go as high as 30% of the booking. Both of those fee structures seems punitively high to me for the MTR model. I'd appreciate any insight from either the owner's or manager's perspective. Thanks.