Posted by renea garcia on December 18, 2003 at 16:10:52:
interested in going into buisness what are the tools i need ? may it be bonded have a realsate lic or whateever
Cost of a property management company - Posted by Frank
Posted by Frank on August 26, 2003 at 21:56:38:
Hello everyone and thank you in advance for your input.
I have a friend who is very tired of their apartments, but don’t want to sell. They are thinking about going with a property management company. I see an opportunity here and was wondering what does the average property management company charge? Is there a percentage or per until fee? How can I determine these fees.
I am getting my real estate license and will continue to get my broker license with hopes of starting my own property management company, but is it something that would be worth while? I do have handymen available for any repairs and such, I could do the landscaping/lawncare and snow removal myself.
Can I ask for a fee up front such as a retainer fee?
Thanks for any input you can give me! Greatly appreciated.
Frank
Re: Cost of a property management company - Posted by Al (Wi)
Posted by Al (Wi) on August 27, 2003 at 08:21:45:
Over the years I have had 8 different property managers involved with different properties. I kept one apartment building (8 flat) long enough to go through 4 managers. Yes, they do get fired if their objectives and practices to not fit hand and glove with the owners expectations. The best of the 4 charged (I negotiated this by naming other candidates she knew I was considering hireing) 5% of the gross rents, plus one months rent when finding and checking out a new tenant.
All the rest charged 10%, some getting 1/2 months rent for a new tenant, and some saying it was a conflict of interest on their part to get anything for a new tenant.
When looking for a manager, I always required that they know how to do credit checks, have proven eviction experience and have a list of proven repair people, and, to insure that they had experience, a reference of two other investors that used their management/repair service.