Real estate investments such as multifamily and commercial properties are often professionally managed by property managers, who are typically responsible for collecting rents, processing evictions, advertising vacant units, qualifying prospective tenants, paying bills, overseeing maintenance requests and protecting the overall integrity of the property on behalf of the owner(s).
Property managers fees are negotiable, but usually include some common elements, such as a percentage of rents collected (i.e. 10% of gross rents), a minimum fee per unit, added fees for new tenants (i.e. 6% of a new tenant’s annual rent), a percentage of large improvement projects that the property manager oversees (i.e. 10% of the cost of a new roof). In large commercial properties, some property managers include an At-Risk fee or a percentage of savings to their fee.