Managing a property

stretchadJuly 6, 2006

I'm in graduate school right now and will be moving from my house soon for the next two years. I have a renter who will be in the house for two years. Once I am done with school I will most likely relocate at least 6-10 hours (or more) away from the house. I'm debating hiring a property management company to manage the rental of the home, but I'm wondering what kind of fees they typically charge.

Anyone have any ideas what it'd cost me to hire such a company to manage my property if I move far away? (obviously I would consider selling the house if that makes the most sense)

Thanks!

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moonshadow

I see you're in Indy area (I'm way up in the northern end of the state). When my accountant and I were discussing this, she said generally management fees in our area range from 5-10% of the monthly rent. Factors regulating fees depends on number of units, proximity to Chicago (it's higher in the city), and size of mgmt company (overhead). 7% of the monthly rent is an average fee in my area for a suburban, single family dwelling. I know someone who has a condo in the gold coast area of Chicago. He paid a mgmt company the equivalent of one month's rent for a year's worth of management. Hope that helps give you an idea of what you can expect.

    Bookmark   July 8, 2006 at 7:31AM
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nfllifer

7% is the norm in my area (MN)... They do however range from 6%-10%. I would not hire a property manager....Especially for a single family home.

Property managers do not care for properties like owners do and there is very, very little work to be done. I have a rental house 3 miles from my home. I rented it out over 3 years ago and have never had to stop by. I have had to get the washer, dryer, and a plumbing leak repaired. They called me and I just called a professional. Only time I will need to be available is for showings.

I know a guy who owns LOTS of units. Some are outstate and he will never hire a property manager. Repairs needed outstate he just calls local pros. As for showings he will either pay the current tenant to show the unit, hire a Realtor, a friend, or a neighbor.

Paying 7% is a lot to have someone open a letter with a rent check and then send that on to you.

    Bookmark   July 9, 2006 at 11:10AM
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