Consumption and Real Estate
How much does a property management company charge?
Question : How much does a property management company charge?
I’d like to buy a property in Canada and rent it out and am thinking of using a property management company to find the tennant, and deal with day to day issues.
Is it a percentage of the rent? Or is it a fixed fee? Actually is it worth using a property management company?
Thanks!
property management
Best answer:
Answer by dog ma
Mine charges 10% of rents received, and I pay for all repairs and advertising when the unit is vacant. We have multiple properties but no longer live in the state where they are located, so we don’t have a choice but to use a property manager. We also have some units close to home which we manage ourselves, but would rather not. We would love to find a reliable PM for the ones here, but so far have not found anyone. A good one is priceless – a lousy one is useless.
This is a difficult question to answer because much depends on how much of the management work you are willing to do yourself. Most property management companies I have know all work on a percentage of the rental income. You can be fairly hands-off but it costs you money.
I use an online service for my units that could be used from a distance (ie out of town). It helps you advertise, collect rent, book keeping, screen tenants and even schedule your contractors. Keep in mind that you will still have call the plumber or handyman yourself but at only a few dollars a month per unit – I think it is worth it!
There is a free 15 day trial here:
http://www.epropertymanagementsoftware.com/