Managing Multifamily Property

1 Reply

Hey guys I currently pursuing a purchase of a 10-30 door multifamily property. I haven’t found a deal yet but I have been looking around and playing with some of the numbers on a few properties near my hometown. Before I purchase any property I want to have a strong understanding of how my management should work. I want to learn how to manage a property from a distance before I make the decision to use property management or not. If you guys have any good resources (books, articles, or podcast episodes) or advice that would be greatly appreciated! Thanks

@Karsen Wynn Congrats on making the jump. 

For owners of MF commercial properties, the Property Management is one of your most important team members, therefore it is very important for you to understand what they do, how they do it and how to manage them efficiently. If you chose to hire one, you will be responsible for ensuring they are working within a set budget to meet your NOI and CapEx. Remember, the value of your asset depends on the NOI. And Property Managers oversee the budget, hire contractors, decide what needs to be fixed and when with the tenants, ... etc.

For a 30 units, if you to manage it yourself, this will become a full time job, . You would be responsible for the leasing as well as managing the tenants and their troubles. In general, you would contract this out to a PM company for a fee around 8-10%. The PMs manage tenants, market the empty space, bring in new tenants ... etc. while you focus on raising money, analyze deals and buy more properties. 

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