What`s up (or should I say `down`) with Barrie!?

[bizaro86]

It seems to me that there are two choices for property management billing systems.


1) Fee for service


Pros: You only pay for what you need


Cons: May get nickle and dimed, expenses will vary, and usually they'll be higher at the worst times. For example when there is an eviction, then repairs, then a re-leasing.


A really good property manager may not like this. After all, if they get great long term tenants set up, and do a great job, there'll be less fees for them.


2) Percentage of Gross, All Inclusive


Pros: Cost certaintly, all-incluse


Cons: If you have a bad PM, they might not be willing to put much time into your property if there are problems.





Of course there can also be a mix, where there is a monthly fee for recurring services and then an additional fee for bigger one-time stuff.


I'd be interested in hearing how others compensate their PM, and which is the most common system.


Michael

 

[RArora]

The charges for our PM are:


10% if you have 1 property with them + HST


or 9% if you have 2 + HST


However, this seems to be on top of these charges where they keep the admn fee of $20 that you can collect on top of a NSF.


I should mention that they do not charge to re-rent the place if the home is rented for 3 months after they have been signed on. Eg. house currently has tenants and you sign them on, if they leave before 3 months PM will charge 1 month's rent to re-rent. But if they leave after 4 months then the re-renting is included. That is the main reason why we chose them-though the premium is high (and we were never told about them keeping the $20 charge ever before) the money saved on the re-rent is what keeps us from looking elsewhere, even though we've not been happy with the way some things were dealt with.


Also another good thing is the prompt responses to my emails. I usually get a response back for the most part within a few hrs. Though some things I have to keep requesting (copies of leases and paperwork I want etc)

 

[housingrental]

Hi Rasna


The prices you are paying to the company you are using are appropriate for the type of property they are managing for you.

 

[housingrental]

Hi Michael


A percentage of gross rent with some services in addition to rent is the most common. The additional service charges will vary from firm to firm. A very common setup might be:


3%-12% of gross rent for monthly management (or flat amount of $XXX per month that will likely be in that range)


An additional fee of half to one months rent to re-rent the unit OR no charge to re-rent the unit (generally with higher monthly fees)


Up to X visits per month to a property included in management fee with an additional charge of $XX per additional visit in the month beyond this


Less common, though many firms do structure it this way, will be premiums attached to certain job tasks:


$XX to provide notices to units


$XX to get contractors to provide quotes for jobs


A percent fee on top of all billings for third party workers


$XX charge for mailing, photocopies, etc..


Hope that helps, if you have any questions let me know.