Posted by James - Michigan on March 03, 2008 at 07:14:39:
30% Is the going rate for lakefront properties where you are on call 24 hours.
Jaems
I’m in Midland, Saginaw and Bay City
Property Management Cost - Posted by Brian
Posted by Brian on February 28, 2008 at 07:51:34:
I have the opportunity to bid on a cottage for property management. It is a little different than just managing a rental for the fact that the leases are ranging from one week to a month. Check in is 3pm and check out is 10am. I would be in charge of cleaning entire cottage, doing laundry of linens, etc. Taking care of lawn in optional. I’m on call 24/7 and have to check the place out after any severe weather. How do I bid this one and what should be the rate? It is on Lake Michigan in West Michigan area. Thanks for your thoughts.
Re: Property Management Cost - Posted by Dave T
Posted by Dave T on February 29, 2008 at 07:26:37:
I once owned a “daily” rental in a beach and golf resort community. The management company did national marketing, took care of reservations, check-in/out, accepted credit card payments, had daily maid service to include linen exchange, and checked on the property before severe weather to make sure porch furniture was secured, and after a storm to check for damage. If any damage or breakage discovered, ordered and supervised repair or replacement as needed.
When I started with this company, the management fee was 35% but after the first year it went to 45% of gross collected rents. In addition to the monthly management fee, all repair and breakage costs were passed through to the owner (me) as well as the merchant charge for processing the credit card payments.
My tenants were short term vacationers with rental terms ranging from 3 or 4 days to two weeks, but generally averaging one week. If my property had been a seasonal rental on a monthly basis, then the management fee would have been around 25% with no daily maid service (basic cleaning, towel and linen exchange).
From your question I wonder if you are really bidding on a property management service contract or a property MAINTENANCE contract.
Re: Property Management Cost - Posted by camgere
Posted by camgere on February 28, 2008 at 20:36:33:
You are going to be on call 24 hours a day, 7 days a week? Do you have a life? You’ll never be able to commit to attending a birthday party, dinner, movie or day trip?
I new a guy who was “on call” 8 or 12 hours a day, 5 days a week (I forget) and got paid half time for being available. He got paid full time for actual work. He took college classes on his off hours and had plenty of time to do homework. I could live with that.
Of course, I’ve heard numerous stories of fast food managers who threaten to fire a worker (or reduce part time hours to a minimum) if a worker doesn’t come in when they are called and left a message.
Re: Property Management Cost - Posted by James - Michigan
Posted by James - Michigan on February 28, 2008 at 08:24:14:
Traverse City perhaps? Beautiful country nonetheless.
Normally its 10%…but this is cottage rentals…more work, but can pay pretty good too.
Well, I’d suggest to get a baseline first. Call up several rental companies (realtors maybe) and find out what THEY would charge.
Get that baseline and report back. We’ll give you some ideas. I’ve never done cottages, but have a friend of mine who has. I will call her post back.
She has done about 30-40 of them for herself/others in Michigan.
I’m interested in finding out what you find because I know nothing about this area in Michigan. I don’t normally say I’m wrong/ignorant on things either. lol 
James
To James-Michigan… - Posted by Brian
Posted by Brian on February 28, 2008 at 17:20:48:
Do you do property management and if so where? Traverse City? I’m in the Holland/Grand Haven/Saugatuck area.
Brian