How much does it costs you for property management?

[KeithdeBraganca]

I am working on the numbers for a sixplex in Toronto (my first property) and was wondering if you could share what percentage or amount you pay for property management. Hopefully, it will a help a lot of us.

Thanks

Keith

 

[donksky]

Depends on the property mgr. you get: I shopped for property mgr. first -ask for quotes, rate sheet & plug that in - fortunately in the 1st condo I`m getting, mgr. was in place for 7% - simply stated -that`s usually % of gross rent. 5-10% is the norm - some prop. mgr. charge per door.

 

[navaz]

A good one will make you money -so 7-12% is cheap- a bad will cost you money -fire them even if they are cheap! good and cheap does not exisit, expensive and good exists, expensive and bad also exists so be carefully

 

[bobbie]

QUOTE (navaz @ Apr 25 2008, 09:37 AM) A good one will make you money -so 7-12% is cheap- a bad will cost you money -fire them even if they are cheap! good and cheap does not exisit, expensive and good exists, expensive and bad also exists so be carefully


I`m paying 8% of Rent on Vancouver Island 10% was common. Just a note on the sixplex,given its your first purchase , remember to factor in commercial mortgage not residential mortgage.

Best,
Barb

 

[Yev]

Another issue to consider is whether the PM charges separately to manage and extra to re- rent the units. They may quote you 5% but also ask for 1/2 up to a full month of the rent to re-rent the unit. I still have not decided if I prefer to pay a TOTAL management fee (a % that includes both managing and re-renting - this is my current arrangement) versus paying for the re-rental of the units separately (gives the managers an incentive to rent them out as they only get paid after the rent them).

What do others do?

Yev

 

[KeithdeBraganca]

Thanks Donna, Navaz, Barb and Yev for your helpful replies.

 

[KenBoutilier]

Hello everyone,

As the owner of a property management company In Halifax I will confirm that as previously stated the norm is 5-10%, also the fee for renting, called leasing fee is also standard and ranges from half of one months rent to a full months rent.You need to evaluate all the fees combined as some companies also charge for advertising and administration fees etc.I am also a firm believer that a good property manager is key to your success especially if you invest in area were you do not live.

Regards,