Should You Hire a PM? (Part 2)

Key Takeaways

Now, property management is going to take all of that on. They typically charge between 6 to 12%, 10% is kind of the norm. I think that's about what we pay our property manager between that 7 and 10% depending on the property. Sometimes when you have multif family properties or more units at one location, property managers can maybe give you a discount and charge at that lower end of the percentage. It also might be based on your area and what they're charging. I think it's really important to do your market research and find out what value you're going to be getting from the property management manager for that percentage of your rental income because going with the um least expensive option, what does that include? Does that provide less services, less quality services? where if you have a property manager who provides the [music] best service, maybe that results in more occupancy, more satisfied tenants, [music] a higher likelihood that the rental income will get paid on time every month by your tenants. [music] And so that percentage is more less of a bottom line than if you're working with a property [music] manager who's unresponsive to tenant requests, not following up on late or mispayments, [music] and not filling your unoccupied units quickly. So, you're not even getting that rental income to pay them that percentage in the [music] first place.