Milwaukee Property Managers
I am new to this landlord business and will be closing on my first 5 unit apartment in Milwaukee. The realtor i used has a property management business and also a real estate investor. His property management company wants me to agree to carry a liability insurance acceptable to agent with limit of liability not less than $500000 with agent named as additional insurer there in. Is this the common way property management company's operate?
His property management fee is 6% BUT they also charge 10% flat fee per unit. Also he bills $29.50 per hour with 1/4 hour increments for all time spent by agents employees repairing or maintaining property for emergency out of hours basis, the hourly rate becomes 11/2 times the quoted rate. Someone smells a rat according to me or i am i being a sensitive newbie?
PS- one good thing i have liked about him is that he has checked over 10 properties which have been tenant occupied but advised me against buying such because of the area, bad tenants or property with many maintenance issues. Although these properties had excellent cash flow, i passed them.
For you experiences folks, let me hear your views. I will be travelling to Milwaukee in 2 weeks to sign loan docs with a local bank and see this property and perhaps buy a four plex too. My goal is to buy 10 4-plex in 3 years.