20% of gross income for Property Management, too high?

Whats the best percentage for Property Management?
In Property Management - Asked by Walter S. - Jun 12, 2009
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Answer(s)

Diane G.
Broker/Agent
McComb, MS

20% is a good figure, but the precentage should be figured by the amount of
responsibility the property manager has.

Jun 12, 2009
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Juan P L.
Owner/Investor
Whittier, CA

That's ridiculously high, in AZ it ranges from 7-10%, CA from 5-7%

Jun 12, 2009
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Knute W.
Owner/Investor
Garland, TX

I have to agree with Juan. 20% way too high. I don't own a property but I have been making offers on many projects in the past three months. After going through many profit & loss statements, I always see anywhere between 3-7% in management fees. Some don't include paying for onsite employees.

Jun 13, 2009
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Leslie H. C.
Broker/Agent
Austin, TX

From: Texas Apartment Brokers
Even a small property such as a four-plex should only demand a rate of 5 to 7 percent. If the manager is receiving 20% of the gross income, what is left for the investor that is taking most of the risk? Shop around and find a property manager with many properties under management in the area. They will have better resources and be able to manage your property more efficiently. www.TexasAB.com

Jun 13, 2009
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Don D.
Owner/Investor
Fleming Island, FL

If some one told me it was 20% i would tell them ,jump off the highest building around here is a web-site for you www.IREM.ORG one of the best places to find Mang, Companys around Look for CPM if you have over 50 units or ARM if less the 50 units
and tell all the rest to take a hike( and just so you know if you charge me over 6% you best be the head hog in town and give the best reports and keep my places full
Thanks ( ninjainvestor@gmail.com )

Jun 15, 2009
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Olga A.
Broker/Agent
Erie, PA

It's a little too high. I does depend on how much your rents are.
I specialize in property management of smaller properties 1-4 units.
I charge 10% NO LESS than $50 though. Our rents here are $300-550 on the units I manage, which makes management fee as high as 16.7% for a unit with a rent $300 where I have to collect at least $50.

Jun 17, 2009
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Joshua O.
Broker/Agent
Madison Heights, MI

That is out in left field. Go get 3 other quotes from different property managers.

Jun 18, 2009
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Walter S.
Researcher
Columbus, OH

It´s not my property, but we will buy it. 32 units and 95% occupancy rate, State Indiana. Now we search a financial partner for this property, our company are from England-Germany. For more infos send email to siegert@a-l-a-g.com. Thanks.

Jun 19, 2009
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Kelly S.
Broker/Agent
Woodstock, GA

Olga is correct. Most property managers charge a minimum. Depending on the amount of monthly rent per unit, the fee could represent 20 percent. However, for most properties the management fee range is between 5-10% depending on services provided.

Jul 29, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

20% of gross could be used as the lease rate for a hotel... but not strictly property management.
http://www.gregorygarver.com

Sep 1, 2009
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