Property management Companies

[JordanJ]

Does anyone know what the average costs are for a Management company taking care of a 12 unit building are? Currently they are charging $27,000 a year

 

[moparcanuck]

Do you happen to know how that works out on a % basis? Most management companies seem to work on a % of the rent rather than a flat rate.

 

[KeenanTameling]

Hi Jordan,

Your local market is? Your building is in a good area? bad?

These variables will play out into what you are getting charged.

 

[bizaro86]

That seems like it might be a bit on the high side, but it's hard to tell without more information.



As an example, if the rents were $1100/month on average *12 units*12 months = $158,400 in revenue before vacancy.



27,000 / 158,400 = 17% of revenue for management.



As others have mentioned, you haven't provided enough information to determine whether this is good value or not. If it's in a high rent small town with rough clientelle and only one active management company, then the going rate might just be high.



Regards,



Michael

 

[housingrental]

I'll also confirm what other posters have wrote - seems to be well above market rate - but exact information on what is included for this rate and the property is needed to determine

 

[JordanJ]

Well my brother owns a condo there and i think most do. The condo took in $50,000 and the Managment
company took $27,000.... condo fees are $311. Still waiting on some more details. There in
the process of setting up another condo board and he wants to get
another Management Company in. Were just trying to figure out what the
norm is. Its in Edmonton by the U of A.

 

[wgraham]

It should be around the 10% mark depending on some variables. The more product you have that is easy to manage the cheeper it will be. The more one offs in crappy areas with crack head tenants the more expensive.

 

[brentdavies]

I think you need to verify your numbers. The fee works out to $187.50 per unit per month. Also if this a condo mgt charge or a rental building.



Condo mgt is about $6000 per year for a small condo, and then add cleaning, landscaping and snow removal costs.



I do the job for $25,000 per year



Cheers

 

[JordanJ]

Hey Brent,

Its a 12 unit condo building. Everybody owns. These were the only numbers he has received so far. What fees does the condo pay the mgt company from? condo fees?