a-la-carte property management services

General Landlording & Rental Properties
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a-la-carte property management services

Matt Schelberg
Rental Property Investor · Baltimore, MD · Member since 2013 · 281 posts · 257 votes

My rental portfolio has grown to the point where self-managing has become a major time commitment. I am considering hiring a full-time employee to assist with managing so I have more time to raise capital and evaluate deals.  But I don't have enough work to keep an employee busy 40 hours/week, so I am considering offering a-la-carte property management services to help support the employee's salary.  

For all the self-managing landlords out there:  If you were going to sub-out some part of your property management to a third party, what would it be?  

  • periodic inspections (with reports and photos)
  • maintenance calls and dispatch
  • move-in/move-out inspections
  • tenant screening
  • lease signing
  • rent collection and eviction
  • something else?

Trying to determine where there is greatest market demand.  Any comments greatly appreciated!

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Kim Meredith HamptonBusiness Member
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
9y

@Matt Schelberg

We are considering doing the same thing with the service structure being offered a la carte

A couple of other items to add to your list;

-accounting 

-showing and processing applications

-attending HOA or COA meetings on your behalf

-serving 3 day or violation notices 

-running rental comparables

-vacancy checks 

-security deposit claims 

[email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Matt Schelberg

    We are considering doing the same thing with the service structure being offered a la carte

    A couple of other items to add to your list;

    -accounting 

    -showing and processing applications

    -attending HOA or COA meetings on your behalf

    -serving 3 day or violation notices 

    -running rental comparables

    -vacancy checks 

    -security deposit claims 

    [email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
    Compass | St. Pete514 Reviews
    WebsiteView Page
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  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    @Matt Schelberg - There are vendors available to help with some of these tasks.

    Rent Collection - Have you looked at paynearme.com?  For your tenants who aren't computer literate enough to pay you on-line, this vendor takes cash for your rent at 7-11. It's free for you and the tenant pays $3.99 to make the payment. They would likely be buying the money orders at 7-11 anyways.  You give the tenant a bar code that allows the cashier to pull up their ledger and prints them a rental receipt.  You will get a record of the payment and the money will be deposited just like a credit card payment.

    Maintenance Calls - www.NightTenders.com Is an affiliate of the National Association of Residential Property Managers. They will handle maintenance calls and dispatch to your vendors.

    Leasing - I'm sure there are property management companies in your market that will offer the service of finding, screening, and leasing up the tenant then passing it to you to manage.

    I just had a call from a company who wanted to handle our inspections, but I can't for the life of me remember who they were.  Their charge was something like $100/inspection, which I wasn't interested in paying, but it did some with extensive reporting.

    That's a start anyways!!!

    757-472-2547
    1Reply
  • Jeff B.
    Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    Don't forget;  you need a License to manage properties not owned by YOU.

    How to get out of that bag?  

    Don't sign contracts and don't accept payments (rent or deposits). 

    All the rest are not an issue.  Also suggest you avoid a business name suggesting Property Management to stay below the radar of the State RE Board - - you're just providing ancillary services, not PM per se

    1Reply
  • Matt Schelberg
    OP
    Rental Property Investor · Baltimore, MD · Member since 2013 · 281 posts · 257 votes
    9y

    @Kim Meredith Hampton Those additional services are good ideas, thanks.

    @Patti Robertson Yes, I could outsource, but for most functions I want to be able to control the quality of my management services. I agree that PayNearMe is awesome -- most of my tenants use it.  Great idea about NightTenders -- the troubleshooting feature they advertise is fantastic.  That is one function I'd definitely outsource -- huge efficiencies from the volume they are able to handle.

    @Jeff B. I take your point, but not all states require a license for property management.  My state (Maryland) does not.

    Thanks for the ideas.  

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Matt Schelberg and @Patti Robertson

    I use OnsightPros and an licensed Florida inspector for all my inspections ( move in/move out), interim and renewals. They both do a great job, great reports and transparency. Everybody gets a copy!

    [email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
    Compass | St. Pete514 Reviews
    WebsiteView Page
    1Reply
  • Shaun Patterson
    Property Manager · West Palm Beach, FL · Member since 2012 · 296 posts · 143 votes
    9y
    Hey Matt, I know with our PM company down here in FL the services we usually offer are almost all of what you said and also give out monthly reports of the P/L on the rentals. Because of the new software programs out there tech savvy PM's can send you an online portal that will show you all PO numbers for repairs when done (pictures if they are good ). They have a 24/7 phone number that can be called for these issues also. The pictures of the move in and move out on the property. The application status of potential tenants so that you can see exactly how many are actually interested in the property. Current rents in the area so that you can tell if you are to low are to high. I would just make sure when you talk to them first ask for the services with out saying your unit count then ask for a price quote per unit. You can usually negotiate that later.
    1Reply
  • Matt Schelberg
    OP
    Rental Property Investor · Baltimore, MD · Member since 2013 · 281 posts · 257 votes
    9y

    To clarify my question:  For self-managing landlords who want to continue self-managing their units, are there are any management tasks that you would consider sub'ing out to a third party?  Perhaps something you hate doing or something do poorly?

    For example, I am terrible at billing my tenants for monthly water usage (in my state the water bills still come to the owner).  If I could pay someone else who does that better and more efficiently than I can, I would do that.

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  • Tom Kaider
    Investor · Palatine, IL · Member since 2015 · 69 posts · 31 votes
    9y

    @Matt Schelberg  Our management firm has evolved to be exactly what you describe, a la cart pricing.  We record the water bill for a lot of clients.  What they have done is put our email address as the contact email address with the city.  So, our bookkeeper get it, records it as a utility chargeback to the tenant, the tenant pays for it, etc.  Easy. 

    0Reply
  • Franklin Spees
    Property Manager · CA · Member since 2012 · 76 posts · 54 votes
    7y

    So this thread is a couple years old now but I still thought I would comment. I believe this a-la-carte management service will and has already become more prevalent. I own a full service residential property management company in Central CA of approximately 500+ units. In my opinion, it is very challenging to exceed that number while still preserving the high level of quality service and communications with our owners. That said, the desire to scale the business has led me to this "unbundled" or "a-la-carte" model which leverages the existing business infrastructure I have in place and also caters to the evolving consumer/investor demands which now include a more active DIY approach to real estate investing. I can offer select services remotely up and down the state for a fraction of the cost of traditional management. It boosts the investor cash flow but also allows them to excuse all the aspects of management that are less desirable for those without systems and a team in place (ie. rent collection, leasing, bookkeeping/accounting, maintenance management, 24/7 emergency services, compliance, new laws, etc.) 

    Franklin
    www.MyPMessentials.com
    Servicing Residential Properties throughout California

    1Reply
  • Brad LarsenPro Member
    Property Manager · San Antonio and Austin, TX · Member since 2016 · 377 posts · 380 votes
    7y

    @Franklin Spees  Interesting concept and I can see that working well in California with the other ancillary services such as sales and escrow being so lucrative.  PM is the net to catch more of the before and after needed for every home.  

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  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    7y

    If I was going to sub something out it would be showings and inspections. Travelling to and spending time at the properties is the biggest time suck. Online rent collection and maintenance calls are easy and can be done automatically or at my convenience. 

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