Problem page
Is a property manager worth it? An honest answer for Massachusetts owners
A property manager is worth it when the fee, from 6% of rent with Copper Bottom, costs less than the owner's time, the vacancies and the mistakes it replaces. For an owner who lives near a well-run building, enjoys the work and has the Massachusetts paperwork under control, it may not be. For an owner who lives elsewhere, has more than a few units, or has already had one deposit or lead paint problem, it usually is. Here is how to work it out for your building.
The math, honestly
Management is a percentage of rent. Against it, count four things:
- Your time, at whatever you value it: rent collection, calls, turnovers, vendors, bookkeeping. Owners typically underestimate this by half.
- Vacancy: a unit that sits an extra month because you could not show it on a Tuesday afternoon costs a month's rent, more than a year of management on that unit.
- Under-market rent: self-managing owners often leave rents where they were at the last renewal. A unit $150 below market costs $1,800 a year.
- Mistakes: one mishandled security deposit can cost three times the deposit plus attorney's fees. One missed local registration is a per-day fine in Lynn.
An example, not a forecast
| Six units in Haverhill at $1,700 a month | $10,200 rent |
| Management at 6% | $612 a month, $7,344 a year |
| Owner time saved, 8 hours a month at $50 | $4,800 a year |
| One unit brought to market rent, $125 a month | $1,500 a year |
| One vacancy month avoided every two years | $850 a year |
On those assumptions the fee roughly pays for itself before counting a single avoided mistake. Change the assumptions and the answer changes; that is why we start with a free rental analysis for your building instead of a promise.
When a manager is not worth it
- You live in or next to the building, have the time, and like the work.
- Your tenants are long-term, your rents are at market and your paperwork is right.
- Your building is one or two units. Ours start at three, and the economics are thin below that.
We say so when that is the case. A client who should not have hired us is not a client for long.
Questions
What percentage do property managers charge in Massachusetts?
It varies by company, building size and what is included. Ours starts at 6% of rent for buildings of three units and up, with leasing and repairs priced separately on the pricing page.
Does a property manager increase rent?
A manager prices units to the current market at each turnover and renewal, which often means rents go up where they have fallen behind. We do not promise a number; we show you the comparable listings.
Can I try management and stop if it is not worth it?
Our agreements renew yearly and can be ended on the written notice in them. We would rather earn the renewal than lock anyone in.