Looking at cost involved for such a deal in PH, as all my props are on the eastern seaboard.
Received management agreement from an agent up there, and they are charging 8.5% Management fee....thats no probs. But, this fee must cover general processing and administrative tasks only, as additional requirements like inspections, bond inspection, inventory reports and property condition reports (which state these must be included), are all extra. This new cost works out to 14%.(This includes lease fees) (This is based on a property returning $1000 / week)
Lease renewal fees and letting fees are pretty exe as well.
Or how about this...... for a property being rented out for $2000/week, the total management cost for the year works out to about $14,000 (This includes lease fees). You need yields like 10% if you have to take management rates like this into account.
I can remember someone posting saying that management fees are expensive, but didn't think it would be this expensive.
This was first quote, but will look into a number of other agencies to get a feel for it.
On top of that, I have been told rates and water is about $2,500 per annum and insurance would be about $1,000.
Can anyone out their vouch for these numbers.
Anyone recommend a management company??
Cheers,
F