Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago on . Most recent reply

User Stats

3
Posts
0
Votes
John Smith
  • Hamilton, OH
0
Votes |
3
Posts

Property Management Compensation

John Smith
  • Hamilton, OH
Posted

The Ohio market severely lacks good property managers which I think has a lot to do with the traditional terms of property management. 10% of an 800 rental is only 80 bucks a month. Do you guys think that's enough to incentivize someone to do a good job?

I have several homes I would like to do this to but here is the situation for the first subject property.

Value: 70 k no work needed and no loans

Rent: Vacant now rents for $850

Tax: 50 per month

Insurance: 55 per month

Maintenance/Repairs: 150 per month

Utilities: All paid by tenant

Net Cash flow: 595

I am moving to a new area and am interested in training a new investor to be my property manager in the area I'm moving from. However, I think 85 bucks per month isn't a reasonable fee to make sure they do a good job and also isn't performance driven.

What about an arrangement like this:

Property Manager will lease, oversee repairs, collect rent, file evictions in exchange for 25% of the net cash flow. I.E. they get paid the same way I do and only when the property makes money. 

Has anyone ever experimented with other property management payment arrangements? Our area also has properties that rent for 500 bucks a month so 50 bucks to manage tenants in the most problem areas? Not worth it to me. I understand the rent up fee but still a lot of hassle for the money. Agree?

Most Popular Reply

User Stats

109
Posts
97
Votes
Amanda Roderick
  • Rental Property Investor
  • Columbus, OH
97
Votes |
109
Posts
Amanda Roderick
  • Rental Property Investor
  • Columbus, OH
Replied

In Ohio you have to have a broker's license in order to run a property management company that manages other people's properties. And allegedly the Division of Real Estate is cracking down on unlicensed companies. Just FYI ... 

Loading replies...