I have purchased a foreclosure house via auction.com that is out of state. I’ve never seen the property and I am searching for a proeprty manager.
The town this house is located in is very s mall and it has been difficult to find a local proeprty manager. In my search for a proeprty manager, I’ve been in contact with a local real estate agent who is very knowledgeable on the rental market and the neighborhood in which I purchased the house. He himself used to own properties on the same street and used to manage properties but has since given up being a proeprty manager and sold his homes many years ago.
He was hesitant to be a proeprty manager again because he said that it’s hard to make it worthwhile financially. However, he has agreed to be my property manager in a unconventional way in the sense that he can be in charge of getting the house in shape to be rented, using his local contacts and maintenance people to do any work that is needed, finding a tenant, fielding any calls from said tenants and making sure his maintenance guy fixes any issues.
But once he gets the tenant in place, he doesn’t expect there to be too much work so does not want to charge me on a monthly basis. He also travels quite a bit so he expects to not be at the home at all once there is a tenant in place.
For these reasons, he has suggested that I pay him an hourly fee for any time he spends working on the proeprty. He suggested $30 an hour or asked me to come up with an payment agreement I would feel comfortable able with.
Can you please share any advice or recommendations for my situation? Is his offer reasonable or should I offer something else? I would love any feedback.
Lastly, I should mention that when I speak with him I am very impressed with his knowledge. He definitely knows the market, the street, the clientele, and he’s an all around good guy.
Thanks for you help!!
$30 / hour seems pretty reasonable for this type of work. Alternatively, you could pay him a percentage on "top" of the work he supervises to get the house in shape.
I would also think a "lease-up" fee would be appropriate. Maybe equal to the first month's rent when he finds and places your tenant. You can then deal with the tenant after that and collection of funds.
@Preston Porter thank you for this insight! I appreciate your feedback!
What type of property is it?
This will help me give a better answer
It is a small 2/1 that was left a mess from the previous owners who lost it to the bank. Thank you for your time and feedback!
I would say give him 50% of one months rent (or whatever you feel comfortable with) as his compensation for needing to do anything to the property for the year.
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