Hi everyone. I have a somewhat unique situation where I have an opportunity to manage some parks (Washington, Oregon, California). I'm trying to wrap my head around what would be involved and whether it would be worth my time since I have a full-time job. Can anyone who manages parks help me out? I have the following questions:
1. What is your management fee (%) to manage parks below and above 100 spaces? Does the fee go up as you fill empty spaces?
2. What are your responsibilities included with your management fee (separate from what an on-site park manager does)?
3. Do you charge an additional one-time fee on top of your standard management fee if you fill a space? This would involve everything from finding the home, negotiating price, all the paperwork and permitting, to moving and setting up the home.
3a. Do you charge a management fee to coordinate removal of old, dilapidated homes?
3b. Do you charge your time to meet with local planning officials in regards to permitting, codes?
4. Do you charge to find and interview on-site park managers?
5. Am I missing anything else that park management companies charge for on top of the standard fee?
@Thomas T. As far as I know, these positions are usually salaried. Some receive bonuses for filling lots. Though, usually they are dispersed at the end of the year. If you're managing multiple parks and managers, the ones I know of tend to get pretty burnt out. Good luck with the new job!
Sorry I wasn't clear and used the wrong term in my initial post. I meant to say that I'll be operating these parks. I would be the property management company. The parks will have an on-site manager (that report to me) to take care of daily tenant issues.
@Thomas T. You'll most likely want to get licensed as a PM in those states. I can't speak for mobile home parks, but I can tell you from management experience that you will want to make sure you have a good software system and streamlined organizational system. You can reasonability automate things if you have very proficient people on the ground and you are the corporate office.
5-10% I would think, depending on size. The software is going to be the biggest part. I use Rent Manager and enjoy it. It could be a lucrative proposition. In terms of price going up as you fill spaces - yes, because it is a percentage. You could always propose a commission as well for spaces filled.
I'd consider asking for a percentage of NOI. The more money you make for the owners the more money you make. If you can raise rents you both win. If you cut costs you both win. If you reduce vacancies you both win. In this capacity you'd be responsible for everything and delegate whatever you feel comfortable to an onsite manager. One consideration is this may not work if you make short-term based decisions (i.e. raise rents above market, neglect maintenance).