Live-in Property Manager in a 4-plex

[Aman Khan]

I am going to take a look at a 4 plex in the next few days. I found out that the building is partially occupied and one of the units is rented out by a property manager. I'm not sure how exactly this works. I've heard of hiring property management companies that you pay a percentage of the rent but how exactly is a live in property manager compensated. This will be my first property and I'm buying with an FHA loan. So any advice is appreciated.

[Aaron K.]

Usually a live in property manager gets a discount on the rent, they are generally not nearly as professional as a company and are usually better with repairs than they are with administrative work.  It can be written in their lease that they get a discount but this can be changed when their lease comes up for renewal.