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Real Estate Property Manager?

Discussion in 'Real Estate Investing' started by Yankees338, Jul 31, 2007.

  1. Yankees338
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    Yankees338 Bronze Contributor

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    Do most people use property managers for their properties? Is it smarter to do with residential or commercial or does it not matter? What are some uncommon tips you might have regarding this subject? Thanks.
     
  2. Adam
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    Adam New Contributor

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    It is very common to use property managers on the commercial side. With residential, most people will create thier own management company for their properties. Residential isn't as profitable on a monthly basis (generally speaking) so it makes it tougher to hire a property manager.
     
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  3. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    When I had rental out of state I had to have PMs. It made things a little bit more "interesting" but cause I was targeting areas with strong grow then I was ok. Communication --that is, constant communication-- was key for me in that case.
     
  4. JesseO
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    JesseO Contributor

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    :iagree: You'll want managers or a management company once you hit more than 30 units, I think. If it is out of state, you'll want them no matter what the size, but it tends to take less of your bottom line when you have more than 50 units.
     
  5. AroundTheWorld
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    AroundTheWorld Be in the Moment Speedway Pass

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    I LOVE my property manager... :hl:

    It, for me, is WELL WORTH the reduced cashflow to have a PM.
    My time and peace of mind is worth it.

    When we first made the switch from doing it ourselves to a PM, a weight was lifted that I didn't even realize I had. The best benefit is time, though. It gives me the freedom to FOCUS on more important things.
     
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  6. JScott
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    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    I would highly recommend factoring the PM expense into your pro-forma calculations before buying a property, whether you plan to use one or not. Even if you don't plan to use a PM, if you know that you will still be able to positively cash flow with the expense built-in, you'll have the reassurance that if you ever need to start using a PM (to save time or if you move out of state), you'll still have positive cash flow.
     
  7. triple J
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    triple J New Contributor

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    I am going to hire a PM and I would like to know how you pay your PM (% of gross rents?) and exactly what duties they perform (showing, leasing, eviction, etc?)? Do you pay extra for getting the apartment ready for a new tenant? Do you hire a sep. person for lawn care, etc?

    Thank you!
     
  8. JesseO
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    JesseO Contributor

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    Triple J, the management team can be paid any way you agree. Usually it is a percentage of the actual rental income. They should take care of every single aspect of the property. They will handle the rent roll, income/expense logs, leasing, advertising, etc. Lawn care is usually contracted out to a landscaping company. Most management co's have maintenance men employed to take care of leaky faucets and other small issues.
     

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