96: Rookie Reply: How Much do Property Managers Charge?

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 17 July 2021

⏱️ 20 minutes

🔗️ Recording | iTunes | RSS

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Summary

This week’s question comes from Lisa on the Real Estate Rookie Facebook Group. Lisa is asking all about property management this week: I’ve never had a property manager, what are the responsibilities of one? I was recommended a manager and was told he charges 10%. What is the average pay for a manager? What questions should I ask when I speak with him? While there is no standard on fees or responsibilities across all property managers, they tend to follow certain averages. Both Tony and Ashley have hired property managers as well as self-managed, here’s what they’ve found through their experiences: Use your property managers as a means to find out more about a market Property managers not only are in contact with your tenants, but they’ll also issue repairs and contractor bids when needed If you’re new to real estate, it’s useful to have a property manager who can help educate you Property management fees are around 10% (of rent) a month, but can be as low as 5% Property managers will also charge fees for filling vacant units or performing maintenance Ask about fees, thresholds for maintenance, and their experience with local investors And more in the episode… If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE). Check the full show notes here: https://biggerpockets.com/rookie96 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode number 96.
0:07.6	My name is Ashley Care and I am here with my co-host Tony Robinson.
0:12.5	Tony, how are you today?
0:15.1	I'm actually doing not the best today because I just got some bad news.
0:19.0	We had a property for sale.
0:20.4	We were selling one of our Airbnb's in Joshua Tree and it was under contract
0:24.9	and the buyer ended up canceling the contract to purchase it.
0:28.7	So like a bunch of other properties like right after we listed ours went onto the market
0:32.4	and some were listed a little bit lower than ours was.
0:34.9	So the buyer statement was that they wanted to explore some of the other options and
0:38.9	they did it within their due diligence period so we couldn't even keep their EMD.
0:42.2	So now we've got to real estate property and hopefully find another buyer that sees some value in it.
0:46.8	Do you think as a buyer or a seller do you think that when you see a property
0:51.7	that was under contract and then it's back on the market that maybe something is wrong with that?
0:56.8	Do you have a little bit of that automatic assumption?
0:59.7	Yeah, so that's what really stinks about that is people are going to see it was listed.
1:04.4	Okay, then it went pending and now it's back on the market.
1:08.1	And I was even talking to my partner like okay,
1:10.2	should we now read listed it potentially at a lower price?
1:13.6	But I think we're both confident in the Joshua Tree market kind of where it's at right now
1:17.6	and in the property that we're selling like we're providing actual
1:20.0	financials with the property and then how well it's done.
	...

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