Property Management Fees?
Scenario: SFH that we are likely going to have to rent out in order to relocate since it is not selling. We are relocating about 25 miles away across the state line. The town where our present home is at is "cracking" down on LL and trying to pass code that requires LL who live more than 20 miles from their properties to hire a property manager in the area.
We have never been LL and find the idea of little overwhelming .
I received an estimate from a local real estate property management company (one of few in this town) of one months rent to find a tenant with "extensive screening" - employment, criminal records, sex offender registry, local landlord association check (60 local landlords) and through some other registry and then 15% per month for ongoing management or a single months rent to find a tenant, screen them, show the property and a guarantee of 6 months for a tenant. We can cancel the month to month at any time but pay one half of one months rent to do so.
Is this typical?
I have been reading a great on several boards and believe we could certainly handle the task but if these rules are passed by the city it sounds like we could be at the whim of the few local property managers price wise later.
Any opinions on the fees or becoming a first time landlord with no experience at a time when life is crazy?
Thanks all,
I have been reading tons and will definitely check out the book. I believe we can do it as we both have business management experience.
I thought the fees were pretty high also...
That is the highest fee I ever have seen quote.
I would counter with 5-7%.
Also scrutinize the contract. Frequently there are add fees, and a cluse that you indemnifiy them for THIER mistakes.