I am new to the real estate investing game and I like the sandwich lease option strategy. I have a nagging question that I need answered before I take the plunge.
Will property managers place and manage a tenant buyer for me? I ask only because my job is fairly transient and requires me to move every few years, which would make it impossible to landlord that thing on my own. What would property managers typically charge for this service? Do they typically use their own contracts or can I use my own pro-seller forms and have them enforce the contracts?
Perhaps the lease option strategy is not the best way to go about building my portfolio since I won’t be in one place long enough to see a deal through to the end (probably)? Any thoughts/adivce/etc. would be appreciated. Thank you.
you can useually find a real estate agent or a property management company that will do this. every property management company seems to be a little different in what services they offer.
with the sandwhich lease options right now you have to be careful the original seller continues to play their mortgages
Property managers typically charge 6-10% of the gross rents off the top for their services. But with a good property manager the service is worth the cost. You have them deal with tenant issues and maintenance, collect rent, market during vacancies (good ones usually have a waiting list anyway), pay the mortgage company, pay the owner if that’s part of the arrangement, and pay you. Plus they send you reports on expenses and things in the area that might affect the rent. They also can recommend contractors and service companies for anything major, and they still have to get your approval for any out of the ordinary issues that may come up.
With a lease option, you can charge slightly higher rents to your tenant buyer, this would sweeten the deal and give you some cushion to absorb the property manager’s fee. Also you can make the tenant agree that they will take care of minor maintenance, like within a certain cost, freeing up some of the property manager’s work and allowing you to negotiate a lower rate. At the end of the term is the only time you’ll have to step in and close or turn the lease over if the tenant doesn’t buy.
I think you can make it work. I love working with property managers because my properties are also out of state and the value they add is well worth it.
i think working with a property management company will definatly take a lot of the stress away