Keep in mind that 10% does not seem like much only 100 out of 1,000 but most rentals yield somewhere about 20% (unless it's paid for) so you are realy talking about paying 50% of your profit... Is that really nessesary or worth the cost??

5-10% is not out of line for a small property. You can always find someone who might do the work for less, but you do get what you pay for.

5-10% is not out of line for a small property. You can always find someone who might do the work for less, but you do get what you pay for.

THANK YOU. VERY HELPFUL. THIS IS A GREAT WEBSITE..... Starting a new venture in KS from OR

Definitely get competitive bids. Also compare how much other services such as repairs will cost you. I have a great company that handles collections, filing, evictions and general mailings and notices. Repairs I can work either through them or through my own resources. It's a great help. Good luck.

Agree about hidden costs. Ensure you get everything in writing and talk about costs up front. You have to manage your management company and keep your eyes on the expenses.

Several landlords I know let the mgt company manage the property, but the landlords continue to do the tenant selection and screenings.

10% is pretty standard and BigLL absolutely right, there will be hidden fees and markups that come out of nowhere. The pros of a property management company include: they should be able to keep vacancies down and the reporting and record keeping should save you a lot of time (esp during tax time). However the cons include: they really cut into the profitablity of a rental (like I said, the 10% off the top is just the beginning - do not be surprised if when all is said and done your shelling out close to 20 or even 30% to them); second if this is the only unit that you need managed then they really don;t do anything that you couldn;t do your self (provided the unit is within 20 miles of you). In this case I would only recommend a property management company if the rental property was out of state.

I think 5-10% is usual but I just signed a contract where I'm doing the property management and I'm getting 15%. Also, beware of hidden costs in the maintenance charges (some will make it up via markups.)