Quote:
Originally Posted by pastarocket
You also need to consider the commission that the developer would pay to a property management firm over time as a deduction from rent. If it is a 30 year time frame, the property management firm can charge at a minimum of 5% of rent per year plus half a month's rent for the first month of each year of a tenancy agreement.
Property management fees can go way up over 30 years.
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When they own a 1000 unit building wouldn't they be more likely to just employ their own property manager? Or at least negotiate a better rate than you'd get just dealing with a couple units.