About 1,500 property managers across the country participated in a survey in the summer of 2016. The survey results contained six key findings, including how much property managers charge and how.
By John Triplett
Property managers across the country in a recent survey were asked, “How do you charge in property management fees? As a percentage of rent or as a flat fee?”
The survey was done earlier this year in June.
“This is the first time the question has ever been asked at NARPM, normally we do not address the fee question,” said Gail Phillips, executive director of the National Association of Residential Property Managers who participated in the survey with Buildium.com.
The majority charge as a percentage of rent. And in the survey 82 percent said they charge as a percent of rent each month. Another 13 percent charge a flat fee each month. Then, another seven percent do not charge at all. The no charge for property management could be for a couple of reasons. The survey respondent may be handling their own property and thus their own property management. Also they could be in a Home Owners Association (HOA).
The survey of property managers showed six major findings in addition to the property management fee information in the research from 1,500 property managers around the country.
The survey was done from June 6, 2016 to July 7, 2016 by Buildium.com and the National Association of Property Managers. Property managers across the country responded to the survey called the State of the Property Management Industry.
How much do property managers charge?
Buildium.com said they wanted to go about this in the survey, “So it didn’t look like we were trying to fix prices or anything,” said Darcy Jacobsen, Director of Content, for Buildium.com.
Then Phillips added during the webinar, “Any time we share information to competitors, we have to be careful we share statistical data. In using the range, of eight percent to 10 percent, the five percent to eight percent, in the survey we asked the range so it would allow us to give you the data without it looking like we are setting prices or telling you how to charge. We used a range to be able to ask the question and to be able to share it with you statistically so that you will know what the market is doing.”
The survey found of those who are charging a percent of rent each month, 57 percent are charging between eight and 10 percent. Next, 24 percent are charging between five and eight percent, which is slightly down from last year. That may be because of increasing rents in many markets across the U.S., Jacobsen said.
Some charge a flat fee
“Then we looked at folks who charge a flat rate. We found that 35 percent charge between $100 and $149 a month. And, then another 31 percent charge between $50 and $99 per month,” Jacobsen said.
“Interestingly that is actually up a bit from last year. Our guess is this must have to do with rising rent prices. Or, perhaps a different mix of folks took the survey. We also saw this where a percent of rent would be a substantial increase due to rising rent rates,” Jacobsen said.
“It is interesting to compare what is being charge” Jacobsen said. “This is just for property management fees, “ she said and does not include any other types of tenant fees.