Liliana Ng, Home Buyer in New York, NY

What is the average management fee of appointing a letting agent to manage the rental affairs of property in New York City?

Asked by Liliana Ng, New York, NY Wed May 2, 2012

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11
It depends on the size of the property and other factors can be from 5 to 10%. If you have a 20+ unit building in NYC, I could recommend a good management company
Elena Ravich
646 593 7207
0 votes Thank Flag Link Fri Jun 1, 2012
The typical management fee is 5 or 6 percent of the effective gross income. Be careful though, you must choose carefully who is managing your property. i would suggest a large firm like Prudential Douglas Elliman. Try:

Elan Gavish
646 808 9494
0 votes Thank Flag Link Thu May 31, 2012
Remember you get what you pay for. That is human nature. A rental management company will not spend as much time on your property. Find and negotiate a fair price.

--
Thank you!

DOM PASCUAL, J.D., ESQ.
ASSOCIATE REAL ESTATE BROKER
Demsker Realty
"Your Experts in NYC Luxury Apartments & Lofts"
304 Park Avenue South
New York, NY 10010
Cell: (631) 741-2764
E-mail: dompascual@gmail.com
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** All information contained herein does not constitute any warranties, offer or commitment or obligation of any sort and/or kind whatsoever and is subject to change, error, omission and/or withdrawal without prior notice. **
0 votes Thank Flag Link Tue May 29, 2012
Please work with an experienced and licensed real estate broker. Negotiate and find quality!
--
Thank you!

DOM PASCUAL, J.D., ESQ.
ASSOCIATE REAL ESTATE BROKER
Demsker Realty
"Your Experts in NYC Luxury Apartments & Lofts"
304 Park Avenue South
New York, NY 10010
Cell: (631) 741-2764
E-mail: dompascual@gmail.com
Join my social network: http://cityamicus.com
Company Website: http://demskerrealty.com/
Blog: http://dompascual.wordpress.com/
Listings: http://dompascual.postlets.com/
Twitter: http://twitter.com/dompascualesq
Facebook Profiles: Dom Pascual; Manhattan Broker

** All information contained herein does not constitute any warranties, offer or commitment or obligation of any sort and/or kind whatsoever and is subject to change, error, omission and/or withdrawal without prior notice. **
0 votes Thank Flag Link Tue May 29, 2012
Depending on how many units you offer for management, it can be 4-7% of the effective gross income (collected rents and additioanl income, such as laundry, parking, etc.). Management includes renting apartments, collecting rents and escrow deposits, and doing all necessary repares and maintenance work. I would be happy to recommend a good management company. If you just want to rent out your apartments - I can assist you at no fee.

Elena Ravich
Rakita Realty
646 593 7207
0 votes Thank Flag Link Sun May 27, 2012
Management companies generally charge between 6 and 10%
0 votes Thank Flag Link Fri May 4, 2012
Hi Liliana,
If by "managing rental affairs" you mean: marketing/advertising, finding a qualified tenant, running a credit check, and preparing a lease agreement/or lease board package in case of a condo or co-op, I can do it for you for free of charge. Please contact me at (212) 991-8072 or email kr@ny-home.net if you wish to discuss this further.

Krystyna Rachtan
President
Licensed Real Estate Broker
New York Home RE Services, Inc.
295 Madison Avenue
New York, NY 10017
(212) 991-8072
Email: kr@ny-home.net
0 votes Thank Flag Link Wed May 2, 2012
Fees are negotiable. The fee can be based on a percentage of gross or net income, a commission on new rentals, a fixed fee, or a combination of these.
0 votes Thank Flag Link Wed May 2, 2012
If you own a building, the management fee charged is typically 3% of the effective gross income (EGI) of the building.

If you are talking about a single unit, there is usually a management company for that specific building in place, and you will want to just call them to ask them what they charge.

Putting a tenant in place should be appointed to a Manhattan real estate broker and not the management company.

Jennifer Chiongbian
SVP/ Associate Broker
Rutenberg Realty NYC
9172502284
0 votes Thank Flag Link Wed May 2, 2012
Hello Liliana,

There are many different scenarios to which your question can pertain and many different outcomes. Since nothing in real estate is "standard" practice, hence all commissions are negotiable etc, the management fee and the way in which you set up the agent to get paid is completely up to you.

Most agents who want to handle the leasing of your building will either work with a property management company and propose to you for them and their property management company to take over the buildings management. If this is the case, the agent should introduce you to the property management company. After meeting with them, they should ask you specific questions as to what your goals are with the building and how much money, if any, you want to bank every month. They should then produce a proforma for you based on current rents, occupancy rate, etc that will tell you their fee and how much you will most likely make. ((Make sure to ask for best and worst case scenario proformas))

If have a superintendent or a property management company and want to enlist one broker to exclusively handle your property, there are many options. I'd recommend that you give the broker an exclusive, let them collect their own fee from the apartments. At my company, if you gave me the exclusive this would cost you nothing. Another option, if you wanted to rent apartments quickly and surely, you could offer the agent a commission equal to 1 - 1.5 months rent of the apartment they just rented (this would be of a cost to you). But in both cases, the marketing expenses should come from the agent - not your own pocket.

I hope this helps! If you would like to know more, please reach out!

Travis Old
CitySites Real Estate Group
(347) 601 - 9600
facebook.com/travisrayold
0 votes Thank Flag Link Wed May 2, 2012
Usually it is a percentage of income generated from building. I have a few management companies I can reccommend. Did you recently purchase a building?

You can contact me at 718-510-3884.

Best,
Tapu

Metropolitan Property Group
0 votes Thank Flag Link Wed May 2, 2012
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