@Jordan Meyer I am a property manager in the Cleveland area. While I agree that the cost of property management is and should be very important to the rental property owner of SFR and small multi-family properties. But experience tells me that it is not the most important question. I have lost new business to PMs who offer discount pricing, but I often get called within a few months asking me if I would take on their property management. I ask what happened... typically I am told that the PM did not do anything, or that they were not really licensed, or that they are having trouble getting their money, etc. Sometimes I will even turn down a PM client, when there entire focus seems to be cutting my PM fees. It makes me question how this owner will be if he has to replace a hot water tank or a furnace or repair a porch.
I turned down a PM client because he thought that I should not charge $100 to negotiate a new lease for an existing tenant. He was ok with the charge, but felt that since it was a 4-plex, that I should only charge $100 for all 4 units. It was not so much the $100, but the idea that this guy was not interested in a professional service. Six months later he still has vacant units.
The more important questions should circle around style and operational issues. "how do you handle tenant screening"? "How do you handle evictions"? How do you handle owner communications? How do you handle maintenance? What are the extra fees above and beyond the monthly PM fee and the lease up fee for a new tenant? ... then, How much do you charge for PM fee and what is your lease up fee?
Just some food for thought.
Bob
