How do you handle property management? Do you hire a professional company or an individual? How do you make sure the property manager isn’t stealing from you?
How much should it cost in relation to the size of the property?
Hi,
Property management averages in cost at 8 to 10 percent for residential. There is little difference between a company and an individual, the big difference is between outside and inside management as your able to set your company policies and procedures and define how management is carried out according to your vision.
Outside management is that independent service while inside management is your employees and your management.
Size of the property does not matter, whether you own 5 units or 5,000 units in one property your cost of management is the same by volume!
GR
8 - 10% of revenue, or 8 - 10 % of what is left after all other expenses are taken out?
How do you make sure your property managers aren’t embezzling?
Hi,
8 to 10 percent of income (revenue) is standard.
You select a manager who has set good policies and procedures for operations!
GR
So my RV park takes in $62,000/year in rent… At 8%, that’s $4,960/year to pay to the property manager? How is that worth anybody’s time? That’s barely even a job.
I personally prefer to work with individual. If you want to get a good real estate agent, I advise you to ask former or recent clients about their experience working with the real estate agent.
And don’t forget that you can negotiate with the agent on the commission percentage, and come to a clear understanding of what services are included for this rate.
Property managers take care of and manage buildings and other real estate properties for individuals or groups of owners. They are classic middle managers that connect owners to renters and also take care of vacant properties. Responsibilities of property managers include marketing vacant units, showing the properties, collecting applications, getting leases signed, collecting rent, overseeing maintenance on the properties, conducting move-in/out inspections, and more.
Most important is the ability to be well organized, able to connect and empathize with people, and be responsive to many types of urgent situations. You’ll want to build a strong network of contractors to handle maintenance issues as well as special requests. And ideally you’ll be proactive in identifying ways for property owners to make valuable enhancements to their properties as well as to save money where appropriate.
SmithA if you are going to plagiarize others articles, at least be intelligent enough to change a few words instead of word for word. Are you involved in the Trump cabinet?
https://www.appfolio.com/blog/2013/09/tips-for-starting-a-property-management-company/
Hiring a real estate agent is a good idea because he will guide you every step of buying or selling a property.
Thanks!!
Hi Jacksparrow,
Great advice.
Thanks for sharing the information.
A lot of property investors are always in need for services of Property Management firm. A property management company can be just perfect for all those who didn’t plan on becoming landlords, but wanted to generate good profits from the properties. If you are planning to deal with property managers, then you should know how exactly they work.
A good property manager is arguably one of the most important factor in having the ability to scale while maintaining a positive healthy cash flow.