How do you pay a property manager?

Specifically, what's the typical method and rate?
In Property Management - Asked by George S. - Jul 23, 2009
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Answer(s)

Davide P.
Broker/Agent
Pinole, CA

Rates can vary depending on the income. I would suggest that a rate of 6-10% is in the "normal" range, and if rent rates are very low per unit they might have a minimum fee as well. When tenants pay the management company places the money into an account and pays you minus their fees.

Jul 23, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

3 - 5%
http://www.gregorygarver.com

Sep 1, 2009
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Chris R.
Broker/Agent
Denton, TX

Very Well. That being said - as a property manager with 40 years experience - it will vary from property to property of course and include allowance for type of property, location of property, condition of the property, what all services are you being asked to perform, what sort of accounting requirements are there, how many tenants and/or how many SF, how much land, etc., etc. all must go in to determining how much manpower / time it will take on your part to manage the property. Typically based on a % of income - generally calculated in the 3% (larger properties) to 10% and might include a base minimum against the %. Might include reimbursement for certain expenses and even for certain manpower specifically for the property. All negotiable.

Dec 1, 2009
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