Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
I have a problem with paying people by percentage rather than pay per hour.
For example, nearly every single property manager charges a percentage of the rent 6% to 10% of the monthly rent for property management fees.
However, if a property rents for $2000/month vs. $1000/month - the property manager makes double! But is it double the work for the property manager? No way. In fact, it may take more work to manage a tenant/home that pays $1000/month versus a tenant that pays $2000/month.
I finally found a property manager who charges a flat fee of $75/month!! So instead of paying $200/month (10% of $2000/month), I saved $125/month.
Now, let's translate that to the lease up fee. It's the EXACT same problem.
If something rents for $1000/month vs. $3000/month - does the agent/property manager do 3X the work to get $3000 for lease up or finding a tenant who is willing to pay $3000/month versus getting paid $1000 (1 months fee) for leasing up a tenant for $1000/month?
It's the same work but the agent/property manager is make 3X the amount of money.
So here is my specific problem. I have several properties that need to be leased up and I"m calculating that it will costs me around $8000 in lease up fees!!
These are higher end properties with fairly high rents.
So here are my calculations
$8000/3 properties = $2600/per property
How long do you think a property manager spends to advertise your property, do background checks, and finally lease it up for you? 10 hours total, 20 hours, 30 hours, 40 hours?
I want to SHOUT out to BP to property managers/agents.
How many HOURS do you think you typically spend in order to find a tenant for a property?
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
9y
I paid for some professional painters. They estimated the job would take 3 days with the both of them for $1200. I said go for it. They worked late and were done in 2 days. If we tallied up the hours I suppose they may have owed me some back but I was happy they did a Rockstar job, worked through their mealtimes and cut out early for a long weekend. I was happy as a clam and don't care what they made per hour. If they accomplished what they did in 10 minutes I would have paid it again.
When your mindset is "What is this person making per hour" you tend to find a lot of people that seem to take twice as long to accomplish a job half as good. I pay for a job done right, granted I don't often pay retail, but I don't watch any ones hours either.
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
9y
@Lynn McGeein I don't think anyone here wants to pay more for anyone than they have to. the OP would like to be able to pay a flat fee for services and not a percentage. as rents vary so would the percentage the PM takes in for doing the same service on each property. so the service does not change only the rent and the amount they receive. what most of the posters here are agreeing to is that the flat percentage takes care of those expenses that fall in between signing a tenant and collecting rent. what we are saying is that if you nickle and dime your PM you will end up with nickles and dimes because your property will take longer to rent. The average PM will want to rent the places for people that will work with their prices, they are in business too to make money just like you and I. I have negotiated parts of my agreements, but others i gave them, it all works out in my numbers for the properties, i make money and they make money. Yes it could be nice to retain more money for your self but if you hire a PM it has to work out for both of you otherwise your properties will not be on the top of the list to rent. like it or not, that's the way most PM's work.
Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
9y
This is exactly why we started managing our own properties. We hired an employee and pay him a small bonus per lease up. His hourly rate is MUCH lower then what a PM charges. Also most PM's either charge triple the cost of their maintenance person, or get quotes then up-charge you.
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
9y
Realistically there's nothing "new under the sun". You can lease it up, you can have a realtor lease it, or you can hire a PM company.
Now that being said if you want to lease it yourself...
Put a sign in the yard.
Post it on FB and ask your friends to share it.
Put it on Zillow.
Put it on CL.
If that doesn't get it rented you're probably going to have to throw it on the MLS. The aforementioned steps cost you darn near nothing. Totally worth doing if you're trying to save 8k.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
9y
@Patrick Liska, I think we agree that the OP is saying the system of charging a percentage to rent the unit out is unfair, and I think we both agree with him. I am describing my PM who has a better system that IS fair, aligned with an owner's interests, and is working out for both PM and owner. So there is a new, better way of property management evolving, one that could benefit him if that business is offered where he needs it. I've seen it available in other states than mine as well, and hopefully it is spreading as it is a much more logical, fair way of doing business. When landlords did not have access to credit reports or criminal background checks like they do now, then charging a half-month's rent seemed fair as they could do what you could not. A full month always seemed absurd to me, even back then. Now, when you can pay an online service $30 or so for the same credit/background screening, e-mail applications to interested parties and schedule actual showings on specific days that fit your schedule, free advertising on postlets and other sites, screening tenants is no longer worth the fees he is being asked to pay, and he should rightly be looking for alternatives. If you read the posts, you'd see posters stating he has a "lacking mindset" and others stating why property managers should be charging that much money for tenant placement, trying to justify it when, in my opinion, there is no justification. Others are saying basically you get what you pay for. And in my experience, that is just not true, as some people just value themselves too highly for the actual service they provide, and you need to weed them out of your business model. I feel it is wise, not cheap or lacking, to try to find value in the service you are paying for.
Residential Real Estate Broker · Cartersville, GA · Member since 2015 · 575 posts · 581 votes
9y
@Joe Kim ahhhh, it finally comes out....It's OK for Joe to make $200/hour but not these poor dumb unskilled property managers...
Hey Joe, this is America; the free market dictates all prices. If you don't like the price then either renegotiate it or move on to another provider.
I find it the height of hypocrisy that an investor from San Francisco with some of the most out of whack market rents in the country is complaining about paying too much to a PM. How about this; I think your rents are too high. You should lower your rents to what's "reasonable". You don't "deserve" $2,000/mo for those properties right? You want to know the ONLY reason you can get those rents? THE FREE MARKET. If someone doesn't like your rent amount they are free to look elsewhere. Likewise if you don't like the market price for finding quality tenants to pay that overpriced rent then look elsewhere.
@Patrick Liska, I think we agree that the OP is saying the system of charging a percentage to rent the unit out is unfair, and I think we both agree with him. I am describing my PM who has a better system that IS fair, aligned with an owner's interests, and is working out for both PM and owner. So there is a new, better way of property management evolving, one that could benefit him if that business is offered where he needs it. I've seen it available in other states than mine as well, and hopefully it is spreading as it is a much more logical, fair way of doing business. When landlords did not have access to credit reports or criminal background checks like they do now, then charging a half-month's rent seemed fair as they could do what you could not. A full month always seemed absurd to me, even back then. Now, when you can pay an online service $30 or so for the same credit/background screening, e-mail applications to interested parties and schedule actual showings on specific days that fit your schedule, free advertising on postlets and other sites, screening tenants is no longer worth the fees he is being asked to pay, and he should rightly be looking for alternatives. If you read the posts, you'd see posters stating he has a "lacking mindset" and others stating why property managers should be charging that much money for tenant placement, trying to justify it when, in my opinion, there is no justification. Others are saying basically you get what you pay for. And in my experience, that is just not true, as some people just value themselves too highly for the actual service they provide, and you need to weed them out of your business model. I feel it is wise, not cheap or lacking, to try to find value in the service you are paying for.
As best as I can tell, your PM *is* the same system. What difference does it make if it's 8% or 10%? The point is still the same. The OP doesn't feel the percentage-based model is fair because he sees no difference in the amount of work performed to rent the $3000 place as opposed to the $1000 place.
The market is the justification. Ryan has it exactly right. There's nothing new under the sun. I said it earlier - you have three best choices in business: pay the market rate, exploit the niche, or do it yourself. What other options are there? Using your landscape example, you don't have any way of knowing the $750 guy is better than the $3000 guy until you've used both of them. If the job you wanted done is done to satisfaction by the $750 guy, fantastic. If not, you look for another guy the next time you need a job done. If you use the $3000 guy and he does an acceptable job, was he overpaid? No, because you paid him.
The market sets the rates. If you think $3000 is too much to put in some trees you use the $750 guy. If everyone else feels the same way, the $3000 guy changes his rates or goes out of business. If he doesn't go out of business it's because enough people believe he's worth $3000 to keep him in business.
Your profile lists you as a real estate agent. Your profession should get this more than anyone. You get 6% whether you're selling a million dollar mansion or a ten grand mobile home. Why should you get more money for selling the mansion? Do you work for a flat fee? I know a lot of realtors and I don't know any of them that work for a flat fee. Despite the proliferation of "Sell it yourself" websites, "show it yourself" magazines, Zillow, Craigslist, etc, all the realtors I know are still doing fine and dandy. Enough people feel that the 6% is a worthwhile trade for navigating the maze of real estate. Not everyone - some people sell it on their own or use one of the fixed-price people. But most people use realtors, still, despite all the choices.
I'm not against finding efficiency. I have used contractors before on a job that have done good work that I've had to tell "Sorry, I can't use you on this job because it's not in the budget to spend $X on that aspect of the rehab". In those cases, some have worked out a better pricing structure for me, others have said "sorry, I can't do it for that". No hard feelings either way. Instead of worrying about what all other PMs charge, I would just find a PM that I thought did good work, and if it was affordable, I would pay them, and if it wasn't I would explain my situation to the PM and see if we could work something else out.
PS: I don't lower my prices for anyone. If I price a rental unit at an amount I feel is fair or competitive for the market, I wait for the market to give me my answer. I don't make my rent cheaper because someone comes and says "I can get something the same size for $50 less down the road" - I tell them they should go down the road and take that place. Now, if I price a unit and no one rents it, and all the feedback tells me my price is too high, I can either lower the price, wait it out, or divest myself of the unit.
Rental Property Investor · Saint Cloud, WI · Member since 2016 · 186 posts · 63 votes
9y
Honestly, with your portfolio as large as it is, you do have a powerful negotiation piece.
With that said, it's also important you create a win-win strategy. If you win and they lose, will they focus on your property first? Of course not.
Create a pay for performance metric.
For example:
Longer lease term -
Annual rent increase rate -
Vacancy percentage rate -
These are examples.
You may become surprised with your year end result. Efficiencies through metrics are profitable.
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
9y
That is not how rental market works. It requires a broker license in CA with special insurance and a rental credential in CA. The E&O insurance used by realtors can not be used in property management.
Assuming he charges you $75/unit he needs to have 166 units to make a living. If the company has two mouths to feed it will be 332 units. These people often work with attorney to evict tenants to go to court.
The SFBA rental market has chilled since early 2016. There has been very few people move into the area for high paid tech jobs. The new housings have allowed those want to rent to even with one month rent for free. Those who do not price rents correctly do not get tenants.
Suggest you save yourself $200/hr manage them yourself.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
9y
@JD Martin, no, my PM is not the same at all as they don't charge anything other than a $150 annual admin fee for tenant placement/screening. I assume your point is that it would be considered too high for the monthly fees as well, but monthly fees have have a sliding scale, lower percentages negotiated to bring it more in line. For instance, in my case, if I had only one property with them, it would be 10% of monthly rents, not 8%. If I have over 10 properties with them, it would be a lower percentage. My main point is that their system is, If they don't collect rent, they don't get paid. That system seems more evolved and fair to me as owner as it aligns our interests in finding and keeping well-qualified, long-term tenants.
And, yes, I provide full service for my clients at greatly discounted rates. I work in targeted mailings, not broad advertisement as my broker won't allow it, but I'm okay with that for now until I build it up enough to get my brokers' license. Most other agents think I'm crazy, but the reason I became an agent again after many years was because I felt 5-6% is simply way too high and not reasonable or fair. I do not feel overworked for the money I make; I offer my clients significant savings; and I hope I am changing the system as I truly believe the homeowner is the one who has invested their time and money and should keep more of their equity. If I could charge a total flat fee, I would, but the system will not yet allow it as most buyers agents want 3% or they'll avoid showing your home, so it would not help my listing clients to lower that at this time, although I ultimately believe it all should change. When I sit at closings with my clients and see the other side getting 3-4% for their side, I'm certain those high rates won't last for much longer as more and more people realize better options are out there.
@JD Martin, no, my PM is not the same at all as they don't charge anything other than a $150 annual admin fee for tenant placement/screening. I assume your point is that it would be considered too high for the monthly fees as well, but monthly fees have have a sliding scale, lower percentages negotiated to bring it more in line. For instance, in my case, if I had only one property with them, it would be 10% of monthly rents, not 8%. If I have over 10 properties with them, it would be a lower percentage. My main point is that their system is, If they don't collect rent, they don't get paid. That system seems more evolved and fair to me as owner as it aligns our interests in finding and keeping well-qualified, long-term tenants.
And, yes, I provide full service for my clients at greatly discounted rates. I work in targeted mailings, not broad advertisement as my broker won't allow it, but I'm okay with that for now until I build it up enough to get my brokers' license. Most other agents think I'm crazy, but the reason I became an agent again after many years was because I felt 5-6% is simply way too high and not reasonable or fair. I do not feel overworked for the money I make; I offer my clients significant savings; and I hope I am changing the system as I truly believe the homeowner is the one who has invested their time and money and should keep more of their equity. If I could charge a total flat fee, I would, but the system will not yet allow it as most buyers agents want 3% or they'll avoid showing your home, so it would not help my listing clients to lower that at this time, although I ultimately believe it all should change. When I sit at closings with my clients and see the other side getting 3-4% for their side, I'm certain those high rates won't last for much longer as more and more people realize better options are out there.
The OP complains about paying by percent rather than by hour (yes, he mentions the re-up as well). That's how he starts his post. Your PM also charges by percent. I have seen more variation in the re-up than in the percentage model, which is virtually universal.
Thoughts on the second part of your post:
1. The standard split generally works 3% each way, with the broker & agent splitting 1.5% (on a 6% commission). Am I following this correctly: your deals work out where the opposing agency splits their 3%, but you are splitting 1 or 2% between yourself and the broker? Or you are still working on a 6% split, but your broker takes 2% and you take 1%? Or your broker takes everything on your split but your flat fee of (for example) $500? I can't fathom too many brokers that are going to agree to a lesser split.
2. The homeowner that is making significant money has rarely invested anything beyond their mortgage and a few upgrades. More common is that they are beneficiaries of a rising market, that has lifted their boat with little input required. A home that was bought for $50k and later sold for $200k, it is virtually guaranteed the homeowner did not put $150k into this home.
3. Not sure how you can determine that 5-6% is unfair. If you sold a house for $50k, you would believe that $3k in total fees is unfair? On a 4-way split each party is pulling $750. Yes, on a million-dollar house, the fees are much more significant and maybe there's a good argument for a percentage+cap.
4. While I think it may be noble for you to work for less money, I'm not sure as an investor I would want to work with a realtor who didn't feel they were worth market rates. I know a lot of realtors, and without bragging I am certain I am wealthier than any of them. And they're getting standard. I might understand your position if you were brand-new and trying to drum up business, trading pay for exposure and jobs, but once established I cannot fathom why you would want to race to the bottom.
Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
9y
This thread is getting out of hand...a bit.
I think my initial post was misleading. I"m not just trying to "save money". But the flip side of the coin is getting the most for your buck. - VALUE. Am I getting the best service for what I"m paying for. That's it.
So let's reframe my question: How do you motivate your agent/PM to provide the best service to you?
I already know most of those answers. I was trying to see if anyone else had other ways to motivate the people they are working with.
At the end of the day, I was really asking for more novel ways to MARKET my properties (and not your DYI type of way), but by paying good people to work for me.
I'm a big believer in paying people well for good work. In many cases, you cannot know if someone is going to do good work or not until AFTER the fact.
By the way, I really like my agent. I'm just looking for a NEW way of doing it.
Why do we all have be like sheep and follow conventional wisdom?
Lastly, I don't think any or most of the respondents have owned expensive SFR for buy/hold.
That move of buying SFR >300K is something I'm trying for the first time when most investors are buying at 50K - 150K range.
I'm not trying to pose this question for my 125K properties. But 300K+ value properties which is in a different category with more risk, more cost, but hopefully some equal benefit.
In my area, a lease list agreement is for 50-75% of first months rent.
With that being said, It does take a good amount of time to get a renter in place, and arguably the most important part!
To actually answer your question, the hours it takes varies VERY greatly, and some of these for the protection of you/actually require a skill/license so thus should be considered more than just opening a door or busywork.
Paperwork = 3-4 hours
Advertising = 2-3 hours
Showings = This one varies GREATLY, first showing = renter? 1-2 hours of your time. 10 showings? 15-20 hours.. 20 showings? 30-40 hours.
In my area, a lease list agreement is for 50-75% of first months rent.
With that being said, It does take a good amount of time to get a renter in place, and arguably the most important part!
To actually answer your question, the hours it takes varies VERY greatly, and some of these for the protection of you/actually require a skill/license so thus should be considered more than just opening a door or busywork.
Paperwork = 3-4 hours
Advertising = 2-3 hours
Showings = This one varies GREATLY, first showing = renter? 1-2 hours of your time. 10 showings? 15-20 hours.. 20 showings? 30-40 hours.
background check = 1-3 hours
Thanks for sharing the numbers. it's helpful to see what the breakdown is.
So P = 4 hrs, A =3 hrs, B = 3 hours = 10 hours total for 3 things that don't changed.
Showing = this is the huge variable part. Both "showing" and "advertising" is the two areas I want to know if there is a way to do this better.
Also, for a $3000/month rental, most of them will have their own agents showing the home. I'm not even sure if my agent will show up to those showings. I have to ask.
it's likely that the number showings for $3000/month rental is FAR FAR less than for the more typical $1500/month (in the market I'm looking at).
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
9y
This is why I rarely bid my construction jobs by the hour , If I tell someone my "hourly rate" it seems high . But when I bid the job , I generally beat my hourly rate and the customer is happy .
Real Estate Agent · Killeen, TX · Member since 2016 · 71 posts · 25 votes
9y
All commission and fees are negotiable so negotiate I know for me personally if I'm working on a big project or try to secure a big deal I work lower then normal just because I know I still win in the end.
I'm currently working on securing a $3m transaction so I am offering my service at 1% per property instead of 3%. It's a win for everyone I get my name on a major 38 unit transaction, they pay 30k instead of 90k and still net 350k.
You don't have to have a lease up fee. At my company we only charge a %/month of rent so if it's not leased up we make no money, so that is the incentive. OR Pay only for the lease up fee, and find a bookkeeper to help with the rent collection. And find a handyman to handle all the repair requests. You just also have to trust that it will all get done. OR Just find a good property manager who will lease it up quickly and make the monthly fee percentage. It's just that simple with a competiive market.
I could call a cab company locally and get a great licensed cab driver who will take me somewhere I need to go, or I could sit on an app, find an Uber driver, with likely a much nicer backseat, and get to the same place for the same money or less, because he won't take the long route. Disruption!
I think my initial post was misleading. I"m not just trying to "save money". But the flip side of the coin is getting the most for your buck. - VALUE. Am I getting the best service for what I"m paying for. That's it.
So let's reframe my question: How do you motivate your agent/PM to provide the best service to you?
I already know most of those answers. I was trying to see if anyone else had other ways to motivate the people they are working with.
At the end of the day, I was really asking for more novel ways to MARKET my properties (and not your DYI type of way), but by paying good people to work for me.
I'm a big believer in paying people well for good work. In many cases, you cannot know if someone is going to do good work or not until AFTER the fact.
By the way, I really like my agent. I'm just looking for a NEW way of doing it.
Why do we all have be like sheep and follow conventional wisdom?
Lastly, I don't think any or most of the respondents have owned expensive SFR for buy/hold.
That move of buying SFR >300K is something I'm trying for the first time when most investors are buying at 50K - 150K range.
I'm not trying to pose this question for my 125K properties. But 300K+ value properties which is in a different category with more risk, more cost, but hopefully some equal benefit.
Your re-framed question is much better: "How do you motivate your agent/pm to provide the best service to you?" That is an entirely different thread.
I would say you are mostly correct in the price range, just for the sheer fact that it is very difficult to make high-dollar property cash-flow. The most prudent course of action would probably be to specifically limit your contact to PM/agencies that deal with high-dollar rentals. Personally, I think a *good* property manager has already set the threshold of property values/characteristics within which he/she will operate, because marketing and screening C/D neighborhoods is not the same as marketing/screening A/B neighborhoods, nor is it the same regarding vastly different price points. For example, does a view matter? Fireplace? Pool? Included maintenance? Easy walking access to shopping? Proximity to the interstate or airport? Granite countertops? An in-house safe? Someone who's going to be marketing your property better know this information. Nobody cares if the house has an in-house safe in a $700 bungalow. Do they care in a $5000 luxury villa?
Just look at real estate agencies. You've got your Walmarts and you've got your Wilkes Bashford. Which one do you want to be marketing your Samuelsohns?
So to that end I really think you will/should be looking for something outside of the box anyway.
Property Manager · Milwaukee, WI · Member since 2014 · 113 posts · 144 votes
9y
A lot of great view points on this post!
As a PM, the only thing I will add is I personally hate doing only lease ups where we don't manage the project. What is the accountability system you have in place @Joe Kim to prevent a PM from placing a bad tenant just to quickly collect their "discount" rate?
Basically, i've got a lot of differences responses to my honest question. I really love the "let me tell you a story" type of answers which is pretty useless.
From do it all yourself on one end of the spectrum, then $99 SnapFlatFee for listing, ask for discounts/flat fee, to ..90% of you all saying "just shut up and pay...like the rest of us"
Nobody knows a better, more novel way of doing this?
It looks like the best answer is the simple one - find the best agent/PM, pay them well.
Definitely. You asked an honest question and you certainly got some honest answers (whether you like them/agree with them or not). I'd say, the reason you're receiving so many of the same answers to your question is because these are the tried and true methods seasoned and experienced investors use and live by. I think it's safe to say, if there was a "better way" to answer this issue, then someone certainly would've brought it up by now (or, they are keeping it secret and holding it close to their chest.. but I doubt that).
I know this isn't the answer you are looking for, but I am just suggesting that experience is the best teacher; and it seems like, after reading a few pages of this thread, that those common responses you've received are "the best" we've got right now. Seeing as how there's always a great financial risk in this business, trying out new and inventive ways isn't usually what investors are looking to do. There is a lot to be lost for taking such a risk and it possibly failing. Of course, the pendulum can always swing in the other direction too - you never know.
Talk to some agents in your area. Interview them. Get to know them on different levels. Maybe find one that works exclusively with investors. Keep in mind (as others have already said) they only get paid when the deal closes and 99% of the time they do not get 100% of the commission (broker fees, other agent gets 1/2, photos, lockbox, etc). Also, some excellent agents out there are unable to negotiate their % commission due to the rules of the brokerage they work for. Don't let that be a hinderance.
I think my initial post was misleading. I"m not just trying to "save money". But the flip side of the coin is getting the most for your buck. - VALUE. Am I getting the best service for what I"m paying for. That's it.
So let's reframe my question: How do you motivate your agent/PM to provide the best service to you?
I already know most of those answers. I was trying to see if anyone else had other ways to motivate the people they are working with.
At the end of the day, I was really asking for more novel ways to MARKET my properties (and not your DYI type of way), but by paying good people to work for me.
I'm a big believer in paying people well for good work. In many cases, you cannot know if someone is going to do good work or not until AFTER the fact.
By the way, I really like my agent. I'm just looking for a NEW way of doing it.
Why do we all have be like sheep and follow conventional wisdom?
Lastly, I don't think any or most of the respondents have owned expensive SFR for buy/hold.
That move of buying SFR >300K is something I'm trying for the first time when most investors are buying at 50K - 150K range.
I'm not trying to pose this question for my 125K properties. But 300K+ value properties which is in a different category with more risk, more cost, but hopefully some equal benefit.
Just saw this piece added to the thread... This post definitely clarifies things! So let me give an updated response...
I invest and I'm also an agent. When working for my clients as an agent, I am motived by their promise of loyalty and repeat business. If they are satisfied with my work, if I can answer questions, get the job done well, and I know they'll come back to me again, then I really focus on their needs. However, if I'm one in a million agents and I know they are going to just use some other guy because his commission is less, etc then that's a relationship I don't want to nurture. Loyalty is what I'm after.
When trying to get inventive in terms of marketing a property, I'd suggest that it really boils down to the basics. Answering the questions: Who is your demographic and where can you find those people? Once you know where to find them, then you can think of different ways to reach them. Trying new and inventive marketing strategies is something I'm always trying to brain storm; and it's difficult to try and come up with something new sometimes. Some times I'll do a "brain dump" - I'll take 5 minutes and just jot down all the ideas I have (good, bad, and crazy) on marketing for a specific property. Once the 5 minutes are up, I've got a long list of ideas I can work from and try out. I mold them into something workable (how can I fit this into my marketing budget, do I have the time for this, etc) and give it a shot.
So, in terms of marketing, it's a lot less "risky" per say to be inventive or try new things. In my previous post, however, I mentioned that most people do not stray from those tried and true methods due to the financial risk at stake. This would be why so many "act like sheep". Understandable to a degree.
And unfortunately you are correct in saying that most of the time you do not know the quality of work someone will provide until after the job is done. Even word-of-mouth referrals from your most trusted partner can steer you wrong or even just happen to have all the stars mis-align and get a bad experience. Par for the chorus. If it happens, take the lesson and move on to the next. (I'm sure you already know this!)
Best of luck with your new endeavor! If I have any brilliant marketing ideas, I'll be sure to share them! :)
Rental Property Investor · Denver, CO · Member since 2017 · 82 posts · 38 votes
9y
I work at a property management here in Denver and our company charges management fees off of a tiered based system. So the higher the monthly rent = the lower your monthly management fee. It ranges between 5% to 10%
It helps that unfairness of charging a flat percentage.
Rental Property Investor · Ocala, FL · Member since 2016 · 226 posts · 140 votes
9y
Most professionals get paid for what they do, not for how long it takes them. If you needed a locksmith to unlock your car on the weekend, he would probably take maybe 5 mins. to do that, once he arrived. But, his fee might be over $200 for that 5 mins. of work. I think I would just be glad that he unlocked the car so I could get on with my life.
If you have to pay, pay cheerfully, not begrudgingly. It's just a cost of doing business.
