What`s A Reasonable Property Management Fee?

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How Do You Calculate Property Management Fees?

A member from Roanoke, Virginia writes:

“Can anyone suggest a good basic percentage to charge for property management services? I manage my own property and my father’s, and I need a figure to use to base fees on so I can expense the management fees between the two accounts. None of the realtors in my area will suggest a fee unless you come in to discuss them managing your property, so it must be somewhat flexible. My father has 13 units, I have 31. Thanks!”

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Posted on Monday, October 20th, 2008 at 9:04 am and is filed under AAOA Forum. You can follow any responses to this entry through the RSS 2.0 feed.

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3 Responses to “What`s A Reasonable Property Management Fee?”

Nancy Sepaher says:

October 21, 2008 at 8:50 am

Anywhere between 5%-10% depending on how much work they do for you. I have a manager right now that charges 5% because the utility bills come directly to my home. The manager collects the rent and has direct contact with the tenants.
Mary Atwood says:

October 21, 2008 at 1:02 pm

Ten percent seems to be the standard around the Baltimore area with the following duties – rent collection, coordination of repairs, inspections (if applicable), registrations (MDE, city registrations), tenant calls, evictions, tenant turnover, etc.
Jim Plante says:

October 22, 2008 at 6:45 am

When I was doing property management in Upstate New York, I was responsible for everything. My fee was 9% with 50% of the first months rent. However if I had to evict a tenant then there was no initial rental fee for the replacement tenant. If an eviction was required then I payed that expense. With that clause the property manager will usually screen tenants very well so that evictions are not required. Good luck.