Posted by isaac on September 12, 2004 at 23:37:55:
alright warrier lets talk about this management business email me ur number and i will call u
Is Prop Mgt a lucrative biz? - Posted by Jim
Posted by Jim on September 09, 2004 at 19:56:55:
I was thinking of ways to form a partnership to purchase apt complexes and then thought…why own them, just manage them. It seems that many apt complexes are run very poorly. Is this due to just bad mgt companies or did the owners accept the lowest bid to manage their property?
What rules, laws, regulations are there to starting a property mgt company?
Re: Is Prop Mgt a lucrative biz? - Posted by M. Martin
Posted by M. Martin on September 20, 2004 at 16:40:52:
Jim,
The worst things about owning rental properties for me are tenant leasing and management, maintenance and bookeeping. Property Managers specialize in these. If you can truly operate your company effectively you could make a fortune. The problem with management companies in my experience is that they take on too many clients. One I tried had 800 units under management. Where is the incentive to rent mine first, what is the priority? They get 10% of all rents and 60% of the first month on any one of them. I have also had trouble with maintenance issues (both too much and not enough). I currently own 14 buidings(various unit counts) and I would love to turn the management over to someone and just collect a check each month. I have professionals on my team for everything else except PM.
Re: Is Prop Mgt a lucrative biz? - Posted by Wes Murphree
Posted by Wes Murphree on September 15, 2004 at 16:39:46:
Most states you have to be a licensed realtor to do it.
They typically get 6-12% of monthly rent, so areas it is customary for the pm company to keep the first months rent as a finders fee also.
The real way to make money in pm is to have your own repair company that you use. IE you bill the owner at $20 a hour but the repair man only costs you $10 an hour. Let me be clear it is illegal to mark up bills from other repairmen and pass it on to the owner, different story is if you own the repair company or your handyman is on staff, you are free to bill them out at what you and the owner agree to.
Negatives are… most lawsuits in real estate are against pm companies. Errors and ommissions insurance is very expensive. Most large apartment complexes don’t hire a pm company, they hire someone to be on site. The accounting you have to do for deposits and rent and outgo is very intensive, and typically regulated by the state.
I own a real estate brokerage that caters to investors, last year we looked at branching out into pm since it was a natural fit. I was really amazed at the amount of law suits after researching it. And looking at the reward as opposed to the head aches, just decided it was not worth it.
Prop mgt seems like an ideal job… - Posted by Bill C
Posted by Bill C on September 12, 2004 at 21:57:26:
Propt mgt seems like an ideal job for the real estate investor. Easy income, few responsibilities, free time to look for more investment properties… what more could you ask for? Any of you investors manage your own properties for the monthly income?
Re: Is Prop Mgt a lucrative biz? - Posted by bill smith
Posted by bill smith on September 10, 2004 at 17:39:43:
in illinois you must be a licensed realtor to manage other peoples properties. on average they make 6 to 10 percent of the gross rental income. they are responsible for hiring/firing all contractors maintenance men finding tenants evictions advertising and so on. i thought about it but it doesnt seem like that great of a deal to me. in illinois it costs about 245 dollars and a 45 hour course and state exam just to be a licensed realtor, then there is a property management course you will have to take as well. you will also have to join a realtor firm or broker to work out of with your license. so you can see there is alot to it. that is how it works where i live anyway.
Re: Is Prop Mgt a lucrative biz? - Posted by Bill
Posted by Bill on September 10, 2004 at 16:00:31:
The information on this site is a good place to start.
Re: Is Prop Mgt a lucrative biz? - Posted by Warrior174
Posted by Warrior174 on September 10, 2004 at 13:31:28:
Jim and isaac, I am also trying to form a property management company. I am in NYC. Why dont we all leverage our knowledge, experiences, and learning Why dont we all exchange info until we all set up?
Warrior174
Re: Is Prop Mgt a lucrative biz? - Posted by Bob
Posted by Bob on September 10, 2004 at 11:30:58:
In Pennsylvania, you must be a licensed broker to manage someone else’s property for a fee.
Re: Is Prop Mgt a lucrative biz? - Posted by isaac
Posted by isaac on September 10, 2004 at 10:13:43:
there is some laws i know i am also in the process of opening a management company
Re: Is Prop Mgt a lucrative biz? - Posted by isaac
Posted by isaac on September 21, 2004 at 09:26:32:
hi martin
can u give me business to do the the managing im located in ny