All Forum Posts by: Robert T.

Thanks to everyone for their advise.  If I can't get these fees lowered, I'll look for a new property manager.

Thanks Jackie.  Unfortunately I may have to do as you advise and find a different property manager.  I've emailed my property manager asking if I am interpreting her fees correctly.   

Thanks, Patrick. yes, 4 different fees.   It would end up being $190 per month total for the first 2 fees and $900 per year for finding tenant.

Hi, 

I just bought my first rental property  last month.  I live in NY and my property is in FL so the property will be run by a property manager.  

I just received the property management agreement and the cost of property management is a little higher then I expected.  Could somebody  please tell me if the fees of this deal are reasonable.

Property location: Ocala FL

Expected Rent rate: $900

Fee for managing tenant relations: %10 of gross lease value

Fee for managing  property: $100 per month.

First  months rent goes to property manager.  Also, 1st month rent of renewal's goes to property manager.

So then this would mean $190 every month goes to my property manager for a property that rents for $900.  Is it normally that high for Ocala FL?  

Thanks

Thanks to everyone for your advise.  I've just emailed my property manager  to just do a standard renter agreement with no option to purchase.  

I would say it benefits her if they buy the house because she is also my real estate agent.   However, I would prefer they not buy the house.

I'm still leaning  towards just renting it now.  If I were to do it,  and the person buys the house, then I would be annoyed that I no longer own the house.  If I do it and the person does not buy the house, then I get the 5k deposit but I have an angry tenant that just lost 10k living in my house.

Does this strategy have any conflicts with the  Dodd Frank/safe act that I should be worried about?

The problem with having the person build equity by paying above market rent is that I don't actually want to sell it.   The 10k deposit(with very little chance of them actually buying it) my property manager suggested is the main draw to this strategy for me.   

Matthew, Thanks. Having the person pay above market rent I don't think was part of my property manager's plan. If the person does this, and they are not able to buy the property after 2/3 years, the amount they paid above rent is mine to keep, right?

Matt, Thanks.  Screwing over a person that is currently living in my property does concern me.    I'm starting to lean towards just renting it.