Anyone know how much a Property manager earns on rental commission? (homes, tenant)

[john3232]

I have (4) single-family homes that range in rent from $925 to $1025 which means I pay about $370 or 10% in commission each month.

I've been wondering how much does a property manager actually pocket?

I’m sure the company takes a cut and the rate varies but are we talking something like 50%?

Or is it often much higher and closer to say $75%

The reason I ask is because I would like my PM to contact me each time a tenant phones in a repair. Unfortunately he often forgets and I’m beginning to think this might be because he doesn’t pocket much of the $370 and thus doesn't care if I stay or move my homes to a different PM service.

[AZJoeD]

Every company is different. Some of the larger property management companies pay their managers a salary. Some a portion of the commission.

Why not just let the manager know you are concerned and ask them how your money is being divided up. They may or may not tell you, but you can always ask.

[john3232]

I prefer not to ask my PM because I'm pretty sure he'll wouldn’t tell me (and he would be right...).

My feeling is if I have four homes wouldn’t the PM be more inclined to keep me happy than if I only had one?

But I’m not sure if this thinking would be correct if he’s working mostly on a salary and not mainly rental commission.

I'm an out of state owner and will need PM for at least another 7 years. However it seems like all of the PM I have used or spoken with talk a good game but once you’re under contract they ended up doing whatever is easiest for them and not necessarily most cost-effective for you.