I'm looking at a property management contract. Some red flags - are these normal?
It's priced at 10% of rent, which seems normal and fine, plus a $100 'setup fee', ok whatever.
It's for an annual contract - I wouldn't do it that way but ok.
They want 6% of the annual rent apparently for finding a tenant! That alone if they find a tenant that lasts the whole year would raise the cost to 16% of rent! (They want an additional $150 a 'holdover' renter fee).
They want a 4% commission if the property is sold - for nothing!
And there's a charge of the balance of the full year's management charge - 10% of the year's lease - if the agreement is terminated. So if they're fired after 2 months, they still get a year's 10% feel.
It's priced at 10% of rent, which seems normal and fine, plus a $100 'setup fee', ok whatever.
It's for an annual contract - I wouldn't do it that way but ok.
They want 6% of the annual rent apparently for finding a tenant! That alone if they find a tenant that lasts the whole year would raise the cost to 16% of rent! (They want an additional $150 a 'holdover' renter fee).
They want a 4% commission if the property is sold - for nothing!
And there's a charge of the balance of the full year's management charge - 10% of the year's lease - if the agreement is terminated. So if they're fired after 2 months, they still get a year's 10% feel.
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