4 ms·

Usually it puts you under breaking even, esp if you just bought the place. Usually 8-12% according to google. Good for a property with a below market mortgage y

Usually it puts you under breaking even, esp if you just bought the place. Usually 8-12% according to google. Good for a property with a below market mortgage you don’t want to worry about but don’t want to sell.

m-i-l 8y ago
Nearer 10-15% in the UK. If you manage to find a good one they're definitely worth it, but the problem is, at least in my experience, the majority aren't.
- retiredcoder 8y ago
  Classical agent-principal problem.
lukevdp 8y ago
In Australia it’s 6-8%
- verbify 8y ago
  There are two kinds of contracts with property managers - one kind that only find tenants, and another that manages everything (e.g. if the boiler breaks they get a plumber). Which kind are you talking about? I'd be surprised if the discrepancy between countries was as large as 6% to 15% for the same contract.
  - lukevdp 8y ago
    The 6-8% is for the ongoing maintenance and routine inspections. Usually leasing the property is 1 week's rent, however sometimes that is included in the management fee as well.
nkozyra 8y ago
Anecdotally we make ~ $500/mo after property management costs, but it isn't 100% hands-off. They are a middleman which means they bother us instead of the tenant. I don't want to belittle the $500, but if we had good tenants and dealt with them directly we'd be getting double that. Now is an extra grand a month worth the hassle with GOOD tenants? Maybe. But all it takes is one bad one to be in the hole and full of stress.
- sizzle 8y ago
  Wow how are you making $1k over mortgage, is the market and location that hot?
  - nkozyra 8y ago
    We aren't because of the property management fees, but we could. We bought at absolute rock bottom in 2010.
    - sizzle 8y ago
      Sounds like a great investment, I'm paying several hundred a month unfortunately cause my market got cold. Might sell the property for a small profit if it keeps burning a hole in my pocket.

m-i-l 8y ago

Nearer 10-15% in the UK. If you manage to find a good one they're definitely worth it, but the problem is, at least in my experience, the majority aren't.

retiredcoder 8y ago
Classical agent-principal problem.

lukevdp 8y ago

In Australia it’s 6-8%

verbify 8y ago
There are two kinds of contracts with property managers - one kind that only find tenants, and another that manages everything (e.g. if the boiler breaks they get a plumber). Which kind are you talking about? I'd be surprised if the discrepancy between countries was as large as 6% to 15% for the same contract.
- lukevdp 8y ago
  The 6-8% is for the ongoing maintenance and routine inspections. Usually leasing the property is 1 week's rent, however sometimes that is included in the management fee as well.

nkozyra 8y ago

Anecdotally we make ~ $500/mo after property management costs, but it isn't 100% hands-off. They are a middleman which means they bother us instead of the tenant. I don't want to belittle the $500, but if we had good tenants and dealt with them directly we'd be getting double that. Now is an extra grand a month worth the hassle with GOOD tenants? Maybe. But all it takes is one bad one to be in the hole and full of stress.

sizzle 8y ago
Wow how are you making $1k over mortgage, is the market and location that hot?
- nkozyra 8y ago
  We aren't because of the property management fees, but we could. We bought at absolute rock bottom in 2010.
  - sizzle 8y ago
    Sounds like a great investment, I'm paying several hundred a month unfortunately cause my market got cold. Might sell the property for a small profit if it keeps burning a hole in my pocket.