I have been asked several times by students and clients alike, “How much can I charge my clients for property management services?” So, I have decided to address this question via my blog, so it is available to all my students and clients alike. Thank you for asking all those intelligent questions. Also, please don’t hesitate to continue to send your questions in.

To address the question about property management rates, here is my answer: Due to antitrust laws governing free enterprise, I cannot answer the question of rates directly by providing you with a specific rate, nor I dare to because your area; and every other  location may be different, with its own local nuances and set of circumstances that will affect how Property management is compensated.

But do not be discouraged that I am not giving you a “rate”, in fact, I can tell you how to figure it out properly and with supporting facts for your sake and your business’.

Pick up five (5) to ten (10) real estate companies in your area, preferable ten (10), and inquire about Property management services, their going rate and what services they provide for their compensation. Do they perform property management services “Ala Carte” or do they have different rates with different services or only one fee that will encompass everything they are describing to you? Take lots of notes.

Now you’re armed with market rates within your market today and what services would be expected at those rates.

Here’s the greatest outcome from this exercise and it is not the market rates, that’s a byproduct of doing your due diligence. Here is the best part, if you called ten (10) companies or more, you may have found two (2) or three (3) companies that do not perform Property management activities at all. Take note of which companies are those, and later contact their Broker directly for a one-on-one meeting to discuss the possibility of referring Property management clients to you. This is the greatest source of property management clients for your company. Take this very seriously and you will enjoy doing this exercise and specially reaping the rewards from this simple and yet powerful strategy to grow your business.

I hope this addresses the “rates” question and gives you plenty to go on. Also, this and other concepts are discussed in greater detail in our coaching program. If interested about my coaching program, go ahead and contact me.