Multifamily Investor · Newport Beach, CA · Member since 2015 · 176 posts · 182 votes
Does anyone have a property management company do the leasing portion (showing the property, tenant screening, lease paperwork), and the you take over the 'day to day' landlord responsibilities? (Maintenance calls, lease renewals, collecting rent, etc).
Specifically looking at out of state scenarios, where I can't be there to do the showings, and would also like the legal expertise of a PM who deals with contracts and lease agreements in the area/knows what a good/bad tenant is for the area.
Looking at paying a fee for that leasing service, then saving the 8-10% on the management.
Just wasn't sure if this is a practice anyone has used, and what your experience was with it? Good idea? Bad idea?
Philadelphia, PA · Member since 2016 · 73 posts · 28 votes
9y
In larger cities this is a pretty common arrangement, especially for large apartment buildings. There are leasing agents and even leasing companies that specialize in helping renters find apartments and property owners find tenants. From what I have seen the agents are paid somewhere around half a month to a month's rent by the property owner (though it varies by market). The agent covers all the pre-lease work and the property owner has final approval on the tenant. Once the lease is signed the agent walks away with their check.
Property Manager · West Palm Beach, FL · Member since 2012 · 296 posts · 143 votes
9y
here in Florida we have some investors that we do that for Thur if you don't have the systems in place to handle the emergencies you might run into some issues when pipes burst.