project management fees
- Thread starter fisher1
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QUOTE (fisher1 @ Nov 15 2010, 04:25 PM) What is a resonable amount to pay for property management? Do you pay a flat rate or a percentage of rent?
Usually most PMs charges the standard 10%, but I would pay more for good service... I have worked with someone on a flat rate basis before, but I prefer the percentage of rent instead given the flactuation of rent income. Besides it makes the PM think twice in over lowering rent price in terms of desperation.
Usually most PMs charges the standard 10%, but I would pay more for good service... I have worked with someone on a flat rate basis before, but I prefer the percentage of rent instead given the flactuation of rent income. Besides it makes the PM think twice in over lowering rent price in terms of desperation.
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It depends on the type and size of the property. For a single family home, up through 5 - 10 units, 10% is most common. If you have a highrise with hundreds of units, you could be as low as 3%.
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QUOTE (fisher1 @ Nov 15 2010, 05:25 PM) What is a resonable amount to pay for property management? Do you pay a flat rate or a percentage of rent?
10-12% for single units plus sometimes a re-lease fee of up to one month rent
6-10% for 4-plex
6-9% for 8 plex
5-8% for 12 plex
4-7% for 20 plex
4-6% for 40 plex
3 to 4.5 % for 100 plex
3 to 4% for 100+ plex
you pay on the upper end if ugly property, bad area or high vacancies .. or far away from major urban center !
you pay on the lower end if stabilized, pristine, easy to manage or great area of town with low vacancies !
You sometimes pay a fee of up to 15% for major upgrade items like a roof or hallway carpets or new windows as supervision of these larger capital projects takes time and expertise to select and then supervise a team of contractors !
You also sometimes pay extra for photocopying charges, travel expenses, telephone charges or year end accounting
10-12% for single units plus sometimes a re-lease fee of up to one month rent
6-10% for 4-plex
6-9% for 8 plex
5-8% for 12 plex
4-7% for 20 plex
4-6% for 40 plex
3 to 4.5 % for 100 plex
3 to 4% for 100+ plex
you pay on the upper end if ugly property, bad area or high vacancies .. or far away from major urban center !
you pay on the lower end if stabilized, pristine, easy to manage or great area of town with low vacancies !
You sometimes pay a fee of up to 15% for major upgrade items like a roof or hallway carpets or new windows as supervision of these larger capital projects takes time and expertise to select and then supervise a team of contractors !
You also sometimes pay extra for photocopying charges, travel expenses, telephone charges or year end accounting
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- Sep 18, 2009
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- 219
QUOTE (fisher1 @ Nov 15 2010, 05:25 PM) What is a resonable amount to pay for property management? Do you pay a flat rate or a percentage of rent?
You get what you pay for. If you are looking specifically in Winnipeg, I could give you some advice. Typically range from 6% to 12% in winnipeg.
You get what you pay for. If you are looking specifically in Winnipeg, I could give you some advice. Typically range from 6% to 12% in winnipeg.