Need to hire a manager, how to compensate?

I’m picking up some extra clients for my property management business and am reaching my capability to manage them myself. I am currently a one man show and need to either grow the business or hire another company to do it for me. I’m not ready to resign to the latter.

I want somebody that can do accounting, showings, and manage tenant relations and schedule maintenance. I’d like to pay them a percent of rents received, possibly with a small base. I’d expect that the right person would expect to make $40-$50k depending on how hard they want to work. Roughly speaking I’d expect this person to handle 60-100 properties with an average rent of $850/month. I currently have 25 properties and a full time job in sales. I currently work from home and would move into an office and share an office with this person so I am involved without the time commitment.

Thinking of offering roughly a base of $400/week and 3% of rents received. I have no clue what other people pay for a manager. My fees are 10%. I am curious whether this seems like the right amount to secure a high quality individual.

Yes, I am writing a business plan now.

Yep, that sounds like a way to do it. Why pay another company to manage if you can just get some help. Here is my two cents. Since this is your business, you should remain the face of the business and hire someone to handle the background work like the bookkeeping, rent collection and maintenance calls. Surprisingly, this can be all done remotely by a VA. There are several online companies that will recruit, manage and handle payment to these VA. You pay them a flat rate and keep the 3% of rents for yourself. Just an idea.

I keep it simple, fixed amount for the work I delegate and a percentage of what he can bring in.

that is a very generous offer.

If it was just % based it would motivate that individual to make sure rent keeps coming in.
If you dont get paid neither does he.

Well, I found the right person and got her booked at an hourly rate.

We are going to work together to grow the business and gain some more clients, we can worry about how to structure the pay differently later.

Great to hear you found the right person!

I run a Real Estate Outsourcing business in the Philippines, where we help a lot of one man businesses with outsourcing to virtual assistants, with everything that can be handled and managed remotely.
The rates are only €525 monthly for 20 hours per week and $925 monthly for 40 hours per week. This is a great way to take away the likes of simple accounting, calls, emails and admin handling, online lead finding, property postings and the likes, which often takes a huge amount of time.

The low rates makes it possible for smaller investors to grow their business by hire much earlier and leverage their time much better on the things that really matter which is usually deal making.