Onsite management

[Account Closed]

I've been looking for a larger multifamily building in my area lately. I've decided I will use a property manager, but at what point do you need an onsite manager and/or handyman? I have a 90 unit under contract right now, but I don' think the rents justify the cost of an onsite manager and handyman. That's about 4 grand a month blown on salaries. The building is kept in top condition for its age, prob due to the personnel always being there. Then again, 4 grand a month, not to mention they take up an apt for the office, which I have to pay the electric and gas bills for. There's tons of extra expenses...when do you guys think a complex should have full time on site staff?

[Bill Gulley]

At 90 units, you are definately in need of at least one full timer! One person can keep track of about 40 to 45 units initially, a point to put some help on board, IMO. There are lots of rules of thumb, but if one person is overseeing maintenance, rent collections, late collections and evictions, bickering tenants and PR, advertising, showing units and just overseeing the cleaners/painters, that 40/45 seems to be a threshold to start putting on some help.

I do know of one owner who has about 200 units and does it himself. He sits in the office, then his wife (the real boss) takes over. They sub out everything they can and use handyman specials. So it can be done. OTH, if you don't have his cell phone number, good luck catching him to show a unit! Guess there is no problem so long as your units are nice enough to warrant people trying several times to catch you.

It's all a matter of organization, setting time aside for certain functions and sticking to it..

I never owned 1,200+ units at one time, but I was the Commissioner of a large Public Housing Authority so was very involved in the oversight of multi units, high rises, to duplexs. While government is inefficient, granted, when to hire another rank in file staff member and for what was an ongoing issue.

I think that 4K a month might be looked at, especially when providing housing, you need to look at that at a market rate for your expense and deduct about half and consider that as income and all of the utilities if you have seperate meters, I know many here pay thier own utilities, but some are included and include cable.

You need to cover off time, maybe after hours on certain days and other aspects to see when they are actually on the job and what that pay should be. I know that some managers of small complexes get free rent and that's it, no other pay, then oit goes to a salary, free rent and benefits for larger complexes.

Tim has family here in the rental business, he might add to this.

While I had a maintenance staff, we also had several plumbers and electricians for example, that we put basically on a retainer for on call emergencies. Lawn care is something that can be contracted out as well as snow removal. If you have a pool, contract cleaning out for the major stuff and skimm it yourself!
Parking lot maintenance is another sub-contract issue, pot holes, painting handicap signs and lines can be taken care of by you local paving company.

Anyway, you get the idea, sub out when you can, have at least two plumbers and electricians on call, you can really get the cost down too if you get with your local trade oraganizations getting younger guys who are licensened, but starting off.

You might be adding all of this as employee overhead, don't know. I would think your COL area is about like it is here.

There are several owners on here that have medium sized organizations that might give better insight. Good luck, Bill