Property Managment

[Matthew Rogers]

Hey everyone, I am new to the real estate investing world. I have noticed some mobile homes in my area that are selling (for what seems to be) for a good price. My question is, how do you generally price out a property managment company. Also, what is a good minimum profit on monthly income to consider it a good deal? The one I am looking at has a monthly profit of $150. Is that too close for comfort?

[Jake Jefferies]

Hi @Matthew Rogers I would recommend calling several property management companies and asking their standard commission rate. Different areas have different rates depending on how high the rents are. Our Denver office's standard rate is 10%, whereas our office here in the Peninsula is 8% because the rents are much higher here. The most important thing is what services are included in the management, what the property management company is doing for you to earn that commission. Are there turnover fees, advertising fees, are you charged when the unit is vacant, or is the commission all-inclusive? These are all questions you will want to ask along with another long list of questions.

I have written up a list of questions to ask property managers (in other areas), if you would like one, shoot me an email and I will send it to you. Good luck.