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What is the average percentage of rent that a real estate agent/property manager collects?

I'm looking to rent out my home when I move.  I'm not exactly sure though how much of a percentage of that rent that my property manager collects for me should be his commission.  10% seems like a lot.
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June 04 2010 - Fayetteville
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Answers (14)

7-10 % in Boise.... It depends on the number of rentals and other factors....We are doing one for my step-mom for 5% and I will do that only for relatives.... It is not worth the hassle...
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July 31 2010

Our company charges 10% of the rent amount (no less than $100 per month) and we do more than most.  We provide the following:

MARKETING: We advertise rentals and homes for sale on various popular websites to promote properties worldwide at the company's expense. We meet each interested person at the home to show it.  Once they choose a home, we speak to them at length, conduct a credit and background check, also at the company's expense.  If they have pets and live in the local area, we visit their home to meet the pets and to see the condition of the home's interior and yard for signs of damages caused by their pets.  Once all conditions are met, a lease is prepared.

RENTED: We conduct six-month inspections of the home and more inspections will be conducted if warranted. In the process, we take photos of anything requiring attention. A report is sent to the homeowners by e-mail with an update on the home's condition and the renter's future intentions to stay or move.  Our leases include items addressing grass cutting, filter changes, no DIY repairs allowed...just to name a few.  We have never evicted a renter and that's due to our careful screening.

Our business is protect people's largest investment and homeowners will not find this for free nor will they get this level of service for less than 10%, so if you can do all of the above, then managing it yourself may be a good option.  However, if you're moving out of the area, interview property managers and get references.  Some companies may be interested in just collecting a check, but as stated above, we care about people's homes. If you're interested in getting references from us, feel free to call 910-534-1322. We would be glad to protect your largest investment.


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July 31 2010
10% of the rent is pretty common in my area (Seattle).
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July 06 2010
8% to 12% is average, but my company charges a flat fee plus service calls. The fee is based on the number of units, location, and what is required. Rental fees are always equal to 1 months rent. (we are licensed agents also) Thanks
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July 06 2010
I'm a property manager myself, and 10% to me seem to be too low considering you may get woke up at 3-4 am for a busted pipe or something. If the rent is 650  65 for a month wage, and I shovel snow and cut grass for my owners. 
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June 29 2010
Generally property managers charge between 8 abnd 10%.  But what seems fair depends on what they do for those monies.  My property management person visits the property every month and collects the rent, inspects the property, takes calls in the night for repairs and problems.  I pay him 10% and figure he earns it, it's worth it not to get those calls at 1am that the toilet is stopped up or the tap is dripping.  But, if the property manager never goes to the property and the tenant mails in the rent and they don't really do anything for it then 10% may seem like a lot of money.  Of course they should also be keeping back a percentage of the monthly rent for possible repairs too. 
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June 26 2010

Pgomez7,

Good Afternoon.

Here in AZ the average PM charge rates is about 6-10% for your
"basic" service.

I hope that helps you.

-Shawn

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June 26 2010
10 to 30% sometimes depending on commercial or residential.
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June 26 2010
You know, I just looked in in wallet and I couldn't find any percents.  My point being that it all depends on how much the rent is.  No one is making you rent your home or pick a particular management company.  If you don't want to pay 1 month's rent for them to find you a tenant and then 10% of each month's rent to collect rent and take all the calls from the tenants, then by all means do it yourself.

Good luck.
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June 24 2010
In the Tampa Bay area market, 8-10% is pretty standard but the final negotiated amount depends on the level of service that the property manager is going to deliver to the homeowner. I know that that percentage may seem high but, as real estate professionals, it is our job to make sure that many things come together at once. It is also our responsibility to find a solid tenant, collect rents in a timely manner, maintain the property to the owners' standards while following state and local laws, begin eviction precedings if needed, etc. The landlord/tenant laws in many states leave little to no room for mistakes. If an owner "messes up", the penalties can be quite high monetarily. RE professionals understand all the ins and outs of these laws and make things go smoothly.
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June 18 2010
8 to 10% is pretty standard. Depends on the level of service they are offering. Also, note that they may "withhold" the rents to ensure that checks clear, bills are paid, etc. So read the contract you sign. But you are hiring a professional and they are providing a valuable service with high liability to ensure compliance with State laws. Money well spent.
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June 15 2010
10% is pretty standard in my area for managing a property. You might consider managing it yourself if it's only one property but have an agent list it to find your tennant. Most agents charge 1 month's rent to do this. I feel you get a better quality tennant using an agent, and you will most likely rent your property faster so it potentially costs you nothing and saves you money in the long run. As a side benefit your agent does all the paperwork and supplies the lease documents.
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June 04 2010
8%-10% is typical.  But there can many times be more.  Many property management firms require an escrow for repairs, sometimes equal to 1 month's rent.
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June 04 2010

It varies and I have seen it from 5% to 14%......depending on the rent charged.

Contact a Realtor© that has a Property Management Department.

Price a couple if not sure about charges for this.

Many other factors to consider......upgrades, maintenance, repairs, etc

Get all the details before going forward.

Good Luck!

James Callas - Realtor©
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June 04 2010
 
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What is the average percentage of rent that a real estate agent/property manager collects?
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