Expert: Brian Bocchieri - 1/11/2008

Question
What is a reasonable management fee that a property management company should charge as % of revenues?  I was looking at a company that was taking 4% in mgmt fees.

Answer
Like anything else in real estate everything is negotiable.  Depending on the property, condition, vacancies, the area of town ... I have experienced fees as low as 2% to as high as  7%.  Get a couple of estimates and ask a lot of questions.  Such as what is included in your fees?  How often will I get reports?  What reports will you supply?  What will you do about vacancies is the advertising included?   Remember this is someone you need to work closely with so be sure you have a good relationship with them and their organization.  Ask for references.

I hope this helps
Wishing you all the best and fell free to contact me with any further questions.

Brian Bocchieri