The Nick Huber Show

Ep 193: Management fees and why building a sustainable management company is important

7 snips
May 5, 2025
Discover why management fees are crucial for successful property investment. Learn about the importance of location and effective management in enhancing profitability, especially in self-storage. Delve into sustainable practices and the risks of poor management, emphasizing the need for skilled personnel. Plus, get insights from the author's journey and the release of his new business guide packed with actionable advice. Perfect for those looking to elevate their business strategies!
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ANECDOTE

Higher Fees Enable Quality Management

  • Nick Huber’s company charges 12-15% of gross revenue as management fees, including tenant insurance revenue. - Competitors charging 5% often manage remotely and cannot profitably support quality management.
ANECDOTE

Moderate Profit Despite Scale and Offshoring

  • Nick runs a management company with $1.2 million in revenue and about 20% profit margin, using overseas staff. - Even with higher fees and offshoring, profitability on management is modest, unlike some competitors.
ADVICE

Build Sustainable Management Companies

  • A profitable management company is essential for sustainability when acquisition or refinancing fees dry up. - Build your business to manage real estate well during market downturns through a healthy management unit.
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