What is the usual amount to pay a company/person to manage the property? I was thinking that 10% of the monthly rent might be an option.

Asked by Dukesofcalm, Brooklyn, NY Tue Mar 5, 2013

Is that too high?

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7
Gail Gladsto…, Agent, 11743, NY
Tue Mar 5, 2013
BEST ANSWER
Dukes,

I do property management and they way I structure it is this:

Plan A (5% of monthly rent)
• Landlord is invoiced directly from vendors for repair services
• The tenant pays rent directly to the landlord.
• Gladstone Group assesses problems, hires vendors for reparation, oversees and signs off on work at completion, but does not hold money.

Plan B (10% of monthly rent)
• The Gladstone Group collects rent and deposits it into an Escrow Account held for the Landlord.
• A dollar limit for “operating funds” is established and all rents beyond that amount are paid to Landlord monthly.
• All vendors, mortgage payments, tax payments, property insurance payments, etc., are paid out of the Escrow Account for the Landlord and a monthly accounting is submitted.

Let me know if you need any further information.

gail@GladstoneGroupRealty.com
0 votes
Russ Ravary, Agent, Commerce Township, MI
Wed Mar 6, 2013
Many management companies ask for 10% of the month rent.
0 votes
Luke Constan…, Agent, Brooklyn, NY
Wed Mar 6, 2013
5 to 10%... Depending on what you want and the size of the property.

Give me a call if you need more information anytime.


Luke Constantino
Realtor
Coldwell Banker Reliable
(212) 300-3919 lukeconstantino@gmail.com
7428 5th Avenue Brooklyn, NY 11209
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Tue Mar 5, 2013
as an fyi - my comment regarding 10% is based on managing a single property, not a multi family building
0 votes
Kathryn Lilly, Agent, New York, NY
Tue Mar 5, 2013
I notice you have been asking many questions regarding tenant issues, management etc.
I have been an owner as well as 3rd party managing agent in Brooklyn for more than 30 years. Please feel free to call me.
Kathryn Lilly
Realty on the Greene, LLC
718-614-5542
P.S 10% is on the high side, but it does depend on the number of tenants, services included etc.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Tue Mar 5, 2013
I think 10% is a reasonable option...it's what my company gets paid....why not ask a few agents in your area to see what the range might be
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Mar 5, 2013
We charge 10% and I know it is considered on the high side.
0 votes
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