Is a property manager worth 8-10%
Exacrtly What services should I expect fo get for the 8-!0% a good property manager gets?
Bryan,If you get a call of a leak and the tub needs to be caulked it can take 30 minutes to get there and see what the problem is. 1 hour waiting at the pro desk to be caulk remover and a tube of 1HR caulk ($15) and driving back to the job. 10 minutes of prep and 5 minutes to caulk. They are into this repair two hours and $15 in materials. If you bill at $45/HR that is $90+materials = $105.
any half decent handyman lives by caulk..they should always have a tube or 2 in their truck..
At least you can write off the expenses paid for management services when doing it yourself you have more issues and you still have the daily headaches. My advice, find a good property management company!
I am a pro and I keep a hand sqeeze bottle of both clear and white in my truck. You would need a whole tube to do a shower and surround that is older. This would be from a gun and it makes no sense to keep these big tubes around. They dry up before you can reuse them.
This is an example. You can't have everything on your truck. It is all the running and the trips to the store that make this business expensive.
Our Company charges 10% but the clients always come out ahead. Since we are a law firm and our staff includes attorney's,Brokers and General contractors, they get huge discounts on legal fees (almost free) and lower maintenance costs .
In the long run we are able to save them . So, i Guess it is worth paying 10%. We also act as their Brokers to buy and sell and they save money on listing fees etc.
I have a couple of rentals with one property manager and a couple with another. There are pros and cons to using a PM but I've used a PM for the last five years and have generally been pleased.
One thing no one has mentioned...and this is the biggest reason I use a PM...is I don't have the right personality to be a good PM myself. If a tenant called me and said his dog died, his wife is sick and he lost his job, I would be overly lenient and just might tell him to catch up on the rent next month. I think I'm just too nice. In the long run, that would bite me in the butt.
I know one PM who keeps a gun in his desk, a gun in his truck and another on his hip. That's just not me.
jeffrey i just don't think we'll see eye to eye on this one....
nobody should at the pro desk for an hour for anything, especially a tube of caulk...
and here is my main problem with property management...they bill out at 45/hr even though they're paying their maintenence guy 10/hr or around there....they shouldn't be profiting that much on a repair...sorry, i dont' think you can change my mind on that, but no biggie..
Originally posted by Sammy Paul:
My experience is that they are well worth it.Mine has a full time operation with a staff that leases out homes that he owns as well. They do tenant screening, lease closing, rent collection, eviction, and handle maintenance calls. Obviously, I have to pay for the maintenance, but I don't have to take the call at 10 PM.
1/2 of the first months rent seems a little steep, but it's not so bad when you consider that they probably get your house rented at least that much faster.
I would highly recommend them. However, I wouldn't get some guy that does it out of his house and isn't doing anything that you couldn't do on your own though.
Truly agree with this individual.
Also, if they are managing multiple properties for you, then I personally believe that they are definately worth the 8-10%.
Originally posted by Sammy Paul:
My experience is that they are well worth it.Mine has a full time operation with a staff that leases out homes that he owns as well. They do tenant screening, lease closing, rent collection, eviction, and handle maintenance calls. Obviously, I have to pay for the maintenance, but I don't have to take the call at 10 PM.
1/2 of the first months rent seems a little steep, but it's not so bad when you consider that they probably get your house rented at least that much faster.
I would highly recommend them. However, I wouldn't get some guy that does it out of his house and isn't doing anything that you couldn't do on your own though.
Truly agree with this individual.
Also, if they are managing multiple properties for you, then I personally believe that they are definately worth the 8-10%.
Originally posted by Corey Demuth:
The other good reason for using a pm, in my opinion, is if you are trying to invest in a distant area. I am currently looking into investing in Syracuse, which is about a 4-5 hour drive from me. TOTALLY WORTH 10% to not have to make that drive a million times when things come up, screening tenants initially, etc. Granted I will end up making the trip now and then and at certain key stages of the process as I am a hands-on kind of person, but for the day to day crap the PM is totally worth the cost.
It's funny because I heard Dave Ramsey telling a listener on his show that managing a property 4 hours away without a PM would not be a problem. While technically that may be doable it's not something I would do or advise someone else to do.