Over the last few years I've acquired 168 residential units. This is a combination of small SFH/duplex as well as some larger complexes. I also have a 14k SF commercial property I've acquired. Lastly, I'm doing a residential land development. All of this is in addition to my primary business in which I have about 15 employees currently. I use a PM for my residential units, they do a solid job, however, there is still some "screws that need tightened" in regards to occupancy and maintenance costs.
I am looking at hiring my first W-2 position for this business.
I am looking for someone that can:
- Manage the manager. Create budgets for properties and work with the PM to make sure targets are being hit
- Strategy behind maintenance. Potentially negotiate better rates with different trades due to our volume
- Work on larger capital projects at some units, as well as strategy on remodeling units such as certain types of materials, etc
- Help network/find/analyze potential acquisitions
- Manage rehabs of properties that are recently acquired before they're put into service
- Produce reports on performance of properties that can be shared with future investors
Have any of you out there hit this stage that could provide some guidance on how you have continued growing once you've hit this stage? I am in a position to acquire more units, I am just apprehensive until I get some additional help.
I'm in a similar position in my business. Do you have a budget in mind for a salary for an asset manager?
I don't have a specific budget in mind. I'm big into bonuses for my employees. So I'd likely do something like a base of $50k-$60k and then bonus potential that could be another $10-$30k? Just a shot in the dark. I imagine it depends on what level of talent you want to recruit.
Thank you for posting! And congratulations on growing your property management venture.
Regarding asset management, the size of your venture currently will not require a full time asset manager. Typically, when portfolio or fund managers are growing and they finally don’t have the time to manage the asset performance themselves, they will hire an outsourced asset manager to perform the work. The standard fee for this arrangement is 1% of effective gross income per month. It’s important you have a quality asset management agreement in place so as to know what the AM is and isn’t responsible for as well as understanding their scope and authority.
I have a few agreements. Please feel free to send me a message if you are interested in seeing one and/or continuing the conversation. I wish you well!
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