Current rates for Property Management

[FrankGordon-Cooper]

Hi

Can anyone provide me with what good property management is worth? I have a property manager in Edmonton raising rates as of January 1st; part of the rate is re-rental will cost me one months rent? Can anyone confirm that this is fair?

Thanks!

 

[DOZAH]

QUOTE (FrankGordon-Cooper @ Dec 1 2008, 05:04 PM) Hi

Can anyone provide me with what good property management is worth? I have a property manager in Edmonton raising rates as of January 1st; part of the rate is re-rental will cost me one months rent? Can anyone confirm that this is fair?

Thanks!


I`m paying 10% for single family homes in Saskatoon.
And 8% for single family homes in Toronto.

 

[ChrisDavies]

And in BC rent-up fees are fairly common. I think it`s fair and it`s going to be becoming more common.

 

[asifghayoor]

i am paying 7% in hamilton, and one months rent to find tennants. This my first venture so I have no real experince yet.





QUOTE (FrankGordon-Cooper @ Dec 1 2008, 07:04 PM) Hi

Can anyone provide me with what good property management is worth? I have a property manager in Edmonton raising rates as of January 1st; part of the rate is re-rental will cost me one months rent? Can anyone confirm that this is fair?

Thanks!

 

[Nicola]

QUOTE (FrankGordon-Cooper @ Dec 2 2008, 09:04 AM) Hi

Can anyone provide me with what good property management is worth? I have a property manager in Edmonton raising rates as of January 1st; part of the rate is re-rental will cost me one months rent? Can anyone confirm that this is fair?

Thanks!

One month`s re-rental fee is common in Toronto (we are paying a flat monthly mgt fee which works out to about 7%), but not in Edmonton as far as I know. Our PM in Edmonton currently charges $300 re-rental fee, plus advertising costs, and a monthly fee of 10%. In Medicine Hat, our PM doesn`t charge a re-rental fee (8% monthly); neither does our PM in Saskatoon (10% monthly).

I don`t necessarily disagree with an extra fee for re-rental, as the PM does have to work harder to get it re-rented, but I think one month`s rent (equivalent to approximately an additional 10 months` mgt fees) is too much. It is part of the job, after all.

 

[Torey]

I don`t understand, wouldn`t the PM earning one months rent just to re-rent the unit, become an incentive to more frequently re-rent the unit? Isn`t this a conflict of interest, where the PM profits by having higher turnover where as the owner is charged more?

 

[terri]

QUOTE (Torey @ Dec 2 2008, 01:01 AM) I don`t understand, wouldn`t the PM earning one months rent just to re-rent the unit, become an incentive to more frequently re-rent the unit? Isn`t this a conflict of interest, where the PM profits by having higher turnover where as the owner is charged more?

I`ve seen some rental agency sites where they guarantee minimum 1 yr, so if for some reason the tenants don`t work out within the first year they will find new tenants at no additional cost. Now this was for their rental service only, if you were using them as PM then I think that re-renting was included in the service they were providing. I thought that this was an excellent selling feature, showed that they stood behind their work and it was in their best interest to make sure that they found you an excellent tenant.

 

[Thomas Beyer]

QUOTE (FrankGordon-Cooper @ Dec 1 2008, 05:04 PM) Hi

Can anyone provide me with what good property management is worth? I have a property manager in Edmonton raising rates as of January 1st; part of the rate is re-rental will cost me one months rent? Can anyone confirm that this is fair?

Thanks!
how many units ?

if one or a few, 10-12 % is common .. and one month fee for re-rental is fair too ..

it is a FREE market .. so what is fair is what you agree on !

Is it fair to charge $120,000 for a Mercedes and only $32,000 for a Hyundai ? Chose wisely .. or switch .. look for price vs. results !!

Larger properties (40 +) would be 4% + onsite manager .. 5-39 units would be around 5-7.5% .. slightly more out of town ..

 

[Starpro]

QUOTE (asifghayoor @ Dec 1 2008, 07:52 PM) i am paying 7% in hamilton, and one months rent to find tennants. This my first venture so I have no real experince yet.
Which property management company do you use ? Are you happy with their overall service ???

Thanks

 

[lanedry77]

QUOTE (thomasbeyer2000 @ Dec 2 2008, 02:31 PM) Larger properties (40 +) would be 4% + onsite manager .. 5-39 units would be around 5-7.5% .. slightly more out of town ..
Any guess on a legal 4-plex in Calgary Thomas?


David.

 

[Thomas Beyer]

QUOTE (DavidSandbrand @ Mar 2 2009, 07:58 PM) Any guess on a legal 4-plex in Calgary Thomas?


David.
8-12% + one month for leasing a suite

 

[InvestagainInc]

QUOTE (Starpro @ Mar 2 2009, 10:35 AM) Which property management company do you use ? Are you happy with their overall service ???

Thanks

Starpro. My company offers Property Management in Hamilton and we will be at the HDAA trade show next week if you are interested in talking.

Cheers,