what is the industry standard compensation for an on site residential property manager?

on site manager 53 units, live in one
In Property Management - Asked by Sherry F. - Feb 11, 2010
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Answer(s)

Karl T.
Owner/Investor
jennings, MO

The standard cost is approximately 5 to 10 % of the annual gross income

Feb 16, 2010
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Dale O.
Owner/Investor
Spanaway, WA

By law there should be no "standard compensation" for an on site residential property manager. For units under 100, it is probably more cost effective to do the management yourself. Even though there is not supposed to be a "standard compensation" rate, it is written into most management companies directives that they will not manage a property for less than X amount of the gross. This amount varies from company to company and can range from 5-15%. By doing the management yourself you are saving this amount to use to buy additional properties at a later date.

Mar 30, 2010
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DAVID B.
Broker/Agent
Los Angeles, CA

The standard offsite management fee is negotiable, but general 5-10% of the Effective Gross Rent. Typically, 10% is reserved for smaller properties, like Single Family Residences, and Multi-Residential Propeties with two to four units. I think the other posts pointed that out. But your question is directed at what should compensation be for onsite management. This vaires widely and depends on a lot of factors.
For a 53 unit property, I would suggest a free apartment and base salary. The apartment size will effect the salary. For a smaller unit, you would increase the salary and vice versa. If the property is management intensive, a commission might be included for each unit rented. The base salary can range and is based on the owner's budget, the income from the property, and the onsite manager's experience. If you have any other questions, please feel free to contact me.
David Bramante
(213) 943-1832 (Office)
David.Bramante@MarcusMillichap.com
www.DavidBramante.com

Jul 24, 2010
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