All Forum Posts by: Ariel Tobi

We manage hundreds of our own doors, no third party.  So, we are a PM for our own properties. I think some of the posters here are a bit out of whack on what they think a PM does and what they should charge.  @Bud Gaffney, what would you do for 2% - 5%?  If the rent was $1000.00 a month, what would you do if you were earning $20.00 - $50.00 per month on the rental?

I always speak to other owners and some select the cheapest PM or realtor they can find. Yes, you will always find someone to fill and "manage" your property on the low level. When something breaks at 2 am, do you expect them to be on call for $20-50 bucks a month? If there is a fire, heating issue, tenant argument, police issue, inspection, etc... Would you be on call for $20 - 50 bucks a month for a property you don't own?

If you drive a vehicle, how much of that $20-50 bucks a month covers gas, insurance, tolls, etc.?  How about covering errors and omissions, general liability, staff, phones, etc.?

You can say it's part of the business expenses, and you would be right. However, the owners must be realistic and know you get what you pay for. You pay 2%-5%, expect to get 2%-5%.  Yes, there would be a world of difference between 2%-5% vs 8%-10%.

Has to be market dependent. In MN and NV I pay less than market with my PM. They give me a quote from a retail vendor that shows a discount for how much business the PM does with them. They ha no problem with me arranging someone else to do the repair.  When I’ve called around the “un-discounted price” has been within 5% of market. The discounted price is usually about 5-10% under market prices. Plus it’s fixed same day. 

If you don’t love your Pm call a couple other local pms or talk to local investors about who they use. Tell the people you interview the address or just the area and the property details (so they don't look up current rental info.) Ask them how much rent they would charge and all charges you would face. 

I pay $300 for a new tenant, $150 for a renewal and 8% of rent collected. Period, end of story. Oh, and they keep 1/2 of late fees. End of story. :-). 

Ps. Does their contract require you use their vendors? Do they add on the charge if you call in your own repair guy? (If so, I’d bail.)