The cost of property management services primarily depends on the size of your building: Brownstone walk-ups with a part-time super have different needs than a 20-story fully staffed doorman building.
Annual minimums are common among the major property management firms
Typical annual minimums are $50,000 - $100,000, rendering those firms cost prohibitive for many smaller buildings. Because of the high minimums, large property management firms are best suited for buildings greater than 50 apartments. Data collected by The Folson Group, a New York City co-op and condo consultancy, shows that buildings pay $500 - $1,200 per apartment per year in management fees.
Smaller buildings in the 20-50 unit range can expect to pay $25,000-$50,000 per year. The difference between the property management firms that serve small versus large buildings is not so much the fee per apartment, but the pool of property management firms that service small buildings and therefore are a better fit.
Project management fees are often extra
It is not uncommon that property management agreements state that their regular services include projects up to a certain dollar amount. The limit varies from property management firm to property management firm, and sometimes even from building to building. The fees for projects that are not included in the property management agreement can be charged as a fixed fee, an hourly rate, and most commonly as a percentage of the cost of the construction project. The percentages also vary from 2-15%.
Additional fees may apply
Additional charges may include fees for refinancing the underlying mortgage, managing any major property damages like leaks or fires, sending out the fire safety, window guard and lead notifications, filing and administering tax abatement, sub-metering electricity for those buildings that are master-metered, and 1098 production.