These management fees seem severe. I did a quick calculation at with a 6% interest rate, 20 year mortgage for 70% of the purchase price, I would need to recover 9% (of purchase price) in rental income just to breakeven on mortgage and rental fees. I factored 3% of rental income to cover cleaning and maintenance, i.e. 23% total rental management fees. This is almost 1/4 of rental income. How can they justify such a high percentage?
I DID NOT include utilities.
These estimates are significantly higher than were communicated to me earlier on in the project.