What Fee May Trustee of Trust Holding Rental Property Charge?
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Question:
I’m the trustee of a rental property worth $120,000 and brings in $1,400 a month. Do I charge a fee based only on the value or also the income and what percent?
Response:
In your situation, I’d look at what property managers generally charge, which is 8-12% of rents collected rather than standard trustee fees. In your case, this would be between $130 and $150 a month. That’s assuming that you’re taking care of all the property management duties, such as locating tenants, collecting rent, paying all bills, and responding to tenant concerns. If someone else is handling some of these responsibilities, you should discount your fee accordingly.
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