Property Management Firms - What are your thoughts? Good/Bad/eh
Hello - 
I have some unique commercial real estate properties available for purchase. However, I don't have the time to personally manage the properties. What has been your experience with using a property management companies? What kind of fees can one expect?

 I use a property management for my residential property and really have been pleased and think their efforts are worth the fee. Hoping I can get the same on the commercial side.
[{"id": "cnfud2f", "text": "I see no one has responded- so I will. \n\nI have never used one before, as I do not own property yet. I will though and when I do I have every intention of using a (reputable) firm. \n\nI will say this; working in the CRE industry it's my belief that the reason the big houses have moved to platforms that are heavy on property management is because since the recession there has been a slow but consistent movement from a market reliant on cap rate compression to one that looks to capital improvements and streamlining as the predominant way to identify assets and to build equity quickly. This is what a good property management firm will help you do. They are worth their weight in gold. \n\nThat being said I would look for one with a great history of success in your area.", "replies": [], "depth": 1}, {"id": "cnfwpfh", "text": "I think that you will find that property management is largely a \"get what you pay for\" industry. There will always be some guy willing to undercut everyone else's fees, but he's probably getting a lot more business than he can handle.\n\nThe fee % will change depending on the size and tenancy of your property. A smaller property with multiple tenants might see managers demanding fees as high as 7-8%, but a larger property with a single A+ quality tenant might see fees as low as 3-4%. I own my own management firm and typically I set my fees in a similar manner depending on how challenging I think the property will be to manage. ", "replies": [{"id": "cnfxh5d", "text": "This is very true. There are some good ones and bad ones and usually you do get what you pay for. Except the ones that are expensive and bad.\n\nI think the best ones offer ala cart services to cater to what you need.", "replies": [{"id": "cng869o", "text": "Exactly, not everyone needs every service, if you just need someone to collect rent and do bookkeeping, I'll do that for you for a reduced fee, but if you want me to be your tenant's maintenance bitch, it'll cost you.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cngamkb", "text": "Good answers from everyone else but just wanted to mention the devil is in the details on this one.  It really depends on the type of property (a strip with a few tenants where the landlord does everything is going to vary so so so much to a NNN asset and again to a 40 story office building.  \n\nDo you do your own leasing and sales?  I always personally think there is value in working with a brokerage that can handle all aspects of your RE holdings vs splitting everything out.  \n\nWhen quoting these things I find too many owners focus only on the base percent and wind up not looking at the other services provided.  A good management company should be able to tailor their product to your needs.  Your property will also define how important staff expenses, maint etc are in the scheme of things.  If one group is planning on charging for maint costs (at a markup) and supplies at a markup and another is planning on expensing a staff position to the property at cost, you can see how the overall percent of rents will vary.  \n\nI guess just overall make sure you are looking at the big picture and not just saying 'oh company a is saying 5% and company b 5.5%'.  its a bit more nuanced than that.  \n\n  ", "replies": [], "depth": 1}, {"id": "cngx5sv", "text": "I largely agree with the consensus of its a get what you pay for with one big caveat. Just because you are paying more, it does not mean you are going to get more. I have worked in commercial property management managing office space for, in my opinion, a great large company with reasonable fees. I am still in CRE, just as a broker now. Please PM me and I'd be happy to give you a suggestion on a few good property management firms.\n\nAlso, keep in mind, so long as your property isn't \"not worth the effort\", that is, VERY SMALL, you will likely be able to have a few PM companies give you proposals, thus allowing you to pick your favorite.", "replies": [], "depth": 1}, {"id": "cnind6e", "text": "can you clarify what unique means here op?  that could change the feedback you are getting pretty substancially", "replies": [], "depth": 1}]