property management fees - stand alone building
**Short version** - what should I charge to manage a freestanding sports bar that's ~7,000 sf with rent ~$14k monthly? **Long version** - I am a lawyer by trade. I represent some mom and pop independent landlords. I just finished a lease on a sports bar that's making it through COVID. It's owned by an elderly couple who live 2,500 miles away but spent their careers in my town. In over 30 years that they have had the building, they have never had decent property management. They have always had something informal with a local individual or company which resulted in badly written leases and oftentimes, underperforming tenants (but that can happen to anyone). Anyway, they want me to manage it. There's not much to do other than hound the tenants for rent and they will need a lot of  hounding. I see anywhere from 4%-10%. I don't anticipate a lot of work, but I do anticipate some headaches from the tenant. I was thinking of a flat fee paid monthly or quarterly in the neighborhood of about $200 monthly. Any actual legal fees would be extra.
[{"id": "g0564lq", "text": "We charge 5% total rent including reimbursements. Earned monthly. I believe that\u2019s standard.", "replies": [{"id": "g0570se", "text": "Ouch.  Rather steep, especially for a single tenant building.", "replies": [{"id": "g06ldhd", "text": "No, the other standard is 15% of operating costs. In my market. You can pay an incentive to negotiate higher rents and save money on maintenance or alternatively pay an incentive to increase CAM which means more maintenance.\n\nFor a single tenant building, a land lease or alternatively a lease agreement that forces the tenant to maintain and repair is another option.\n\nIf you are a lawyer, and passed the bar you can change $300-$500 per hour. Why do property management what you could practice law.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g05fjf8", "text": "If it's a solid tenant that has most of the building 3.5-4% kind of have to judge how much work you will be doing. For multifamily 7%+\n\nSo you should be charging at least 400/month in my opinion.\n\nIf it's a triple net lease then you can charge less.", "replies": [{"id": "g05u2az", "text": "I\u2019ve only ever seen 3% for Multi", "replies": [{"id": "g06ndh6", "text": "Some here charge 5-6%", "replies": [{"id": "g077f5f", "text": "Really? For a quadruplex, sure. But for 100-units that\u2019s outrageous.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g05iqbn", "text": "4% effective gross income", "replies": [], "depth": 1}, {"id": "g05iy8p", "text": "We own/manage 200+ retail properties all over the country. For PM we charge 4% on single tenant and 5% for multi tenant.", "replies": [{"id": "gfzum9q", "text": "Does that include any parts or materials?", "replies": [], "depth": 2}], "depth": 1}, {"id": "g065yet", "text": "In the best of times property managing a sports bar is not for the faint of heart and managing a sports bar during a global epidemic has the words **DON'T DO IT** written all over it in capital letters. Anything you might charge whether 3%, 4%, 7% or 10% monthly is not going to be worth the hassle and potential liability. Help that elderly couple find someone else who is an experienced property manager and willing to accept the risk do this job. This is a job you don't want. End of story.", "replies": [], "depth": 1}, {"id": "g06cs3y", "text": "3.5%-4% is normal, net of all rent. 7%+ is high for anything that is not residential, IMO.\n\nI would not do it, unless you have contractors, landscapers, handymen that you trust, and like 2AM phone calls.\n\nFire alarm at 2AM? You are getting up. \n\nSewer main blows up? Your probably going to be on site most days.\n\nLeaky roof calls? that is you.\n\n&amp;#x200B;\n\nIt's more than just collecting rent. If rent collection is all that is was, it would be less. \n\nMight be time for your clients to sell, if their kids are not interested in helping out.", "replies": [], "depth": 1}]