Negotiations with Property Manager

5 Replies

I want to negotiate a new deal with my property manager, but want to get the opinion of the community. I started with one house with my current manager and now have three. Alone with increasing the number of rentals I also have got in better neighborhoods so better rents. I currently have three additional properties on contract that I will be adding in the next 45 days. I want to negotiate the 1st month rent component. I appreciate my manage and they do a great job, but I would like to split the 1st month. So do you all I should try to leverage my growth? Plus Im not doing it just to do but think adding three additional mortgage at one time I can't offer to lose a whole month's rent. I forgot to mention she is also my real estatle agent. Please let me know your thoughts.

3 homes to me is not even close to being in a negotiating position.  If the management does a good job, places good tenants and has a great team in place then you might want to keep things as is. Remember they have overhead, hopefully have good employees.  Property management is a less then desirable profession so if you find someone doing a good job be happy. 

Good luck

@Robert Howard I agree with @Curt Davis . Good PM is worth what you pay them.

That being said I don’t think 6 houses is much of a deal either. If you’re talking single family homes maybe when you get to 20 plus it is different.

If you do apartments maybe when again it’s 20 plus units. Idk how big or good your PM is but the good ones I’ve met often won’t compromise their pay at all because they don’t need to. They’ve got a lot of business.

It varies by market but if my PMs fee structures are typical in the market and they’re not overcharging I don’t have an issue with it.

Whatever you pay your PM, assuming their good, is worth it because they’ll save you a lot more money down the road.

What does the 6 units mean to the property manager.... If they aren't big then maybe you have some wiggle room. However I find it hard to imagine they don't have significantly more than just yours to make it a worthwhile busniess  but if she's your agent maybe not.

Thanks for the replies.  I see my six isn't sufficient.  She and her husband manage about 150. They tell me all the time how they fire owners. Lol. But they are worth their weight in gold. I was more trying to figure out how to survive 1st couple of month mortgages with ni income; which now I will find another solution. 

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