What do property managers get paid

[Sam397]

I am getting ready to switch a couple of my monthly rentals to AirBnB and will be needing a property manager. The person I am going to hire has no college degree or much experience but he knows what has to be done to succeed as a host. Back when I first started hosting things didn't look good and I was already thinking I made a mistake. He stepped in and changed just about everything I was doing and things changed for the better almost instantly. And he has done the exact same thing for two other hosts in the Reno area.

My problem is I have no idea what to pay. I know things like the area,  job responsibilities, all factors in but I don't know the starting point. Is this a minimum wage position or a union wage position. I want to pay him well enough to keep him from getting a better job but I still need to make a profit.

I was hoping that anybody who uses a property manager or someone who is a property manager can give me a ballpark starting point. Any input would be greatly appreciated.

[Helen-And-Mario0]

If he has done for others, match the rate. But if you do have multiple units for him to maintain, it may be a good deal for him and cut the rate. 

Why dont you ask him his expectation? you can do by unit or pay him flat monthly salary, what is fair for you and him? All markets and personal pespectives are different, I will just simply ask him. 

[NomadikByNature0]

Hi Sam!

I charge 20% of each booking. Co-hosts do A LOT. If it weren't for him you would have to do the work yourself or worse wouldn't be making any extra income. Maybe start at 15% is see his work ethic and reviews, then re-consider as you build a relationship.

Best of Luck,

Keva

[Sam397]

Thanks for the input you guys.

@NomadikByNature0 you are correct about them doing a lot, probably more for me than others since this guy will also be taking care of the maintenance issues as well (I don't think that is a standard job requirement for a property manager) Basically he will do everything involved in hosting a BnB.

I was thinking about paying a salary but maybe a percentage based pay would be better. 

@Helen-And-Mario0  We have discussed this and this is new to him as well and he has no idea what they make either. I think he feels the same as I do though, he wants a fair pay but doesn't want me to go broke paying him.

[Jayesh5]

@Sam397

Here in Australia you can sell the management rights to an going enterprise and receive a monthly payment from the managers.  I know you do not want to "sell" the business per se but the payout seemed quite fair to me. 

The owner of the property receives 30% of the net earnings.  Your co-host could bill you separately for his maintenance work and you could base it on this type of figure.

This seems more secure for you and also a great incentive for your co-host to continue performing as great as he has been.

Lisa