Property Manager Salary

In truth, most property management companies charge between 8-10% of gross rent collected for residential properties and 3-5% for commercial. There is a difference between a property manager and a property management company.

When you hire a property manager you are hiring an employee. When you hire a property management company you are simply outsourcing the management to a company. Here's the benefits of hiring a property management company when you first start purchasing rentals.

A professional property management company knows the law for landlords and will make sure you are doing everything legal
A professional property management company will know how to most effectively market your properties to achieve a low vacancy rate
You may decide to manage the properties yourself. You also want a company who specializes in your type of property.

The next are the income statement accounts. We talk about revenue accounts. There are late fees, application fees, and potentially interest. There are administrative fees, bank fees, supply expenses, salary expenses, payroll taxes and fees, and things of that nature.

Taxes - if you have unemployment or worker's comp you have to file those taxes. There are rent expenses. If you have a property manager you would have a management fee.
Insurance
Legal and Accounting Fees
There will be legal and accounting fees if you have an accountant or an attorney involved in your business.

Make sure if you've got payroll that you take money from the operating account and move it into the payroll account. Make sure you reconcile your accounts on a regular basis.

In commercial and retail property management, you will come across some landlords that are quite difficult to work with.

Over time the relationship between the property manager and the landlord can become quite stressful (even toxic) and impact the processes on the property.
Lease administration also requires special skills when it comes to tenant mix management, tenant analysis, and vacancy management.

Tenant management systems and processes will need to be implemented. Tenant management processes should incorporate good business procedure and attention to detail.

Many disagreements can occur as part of the day to day property management activity in any investment property.. This means that the property manager will need to understand what each landlord expects when it comes to income, expenditure, maintenance, reports, tenant mix, and vacancy management.

Optimizing income and managing expenditure is all part of the daily process when it comes to property performance and property optimization. Financial management is reasonably straightforward when it comes to a single tenant in a single property.