Ridgewood, NJ · Member since 2012 · 23 posts · 0 votes
Is there any way to have a property management company handle the midnight calls, the routine maintenance, the drama, the toilets, the yard, and everything like that... but personally handle the tenant screening and application process/documentation?
The reason is because I feel I can do a good job of tenant screening and organized documentation of everything. Not only that I [i]prefer to pick the tenants and make sure we're A OKAY on legal everything to avoid discrimination suits.
Happy to help Eric!
Cost for a maintenance person I have no idea. Perhaps you could find someone local who currently does this for several owners.
My 2 property managers charge 8 & 10% of collected rents. I don't pay any fee for them placing a tenant but this is common based on reading other posts, like Ned Carey mentioned. They also deduct maintenance costs.
If you turn over an already occupied unit and the PM is getting 8-10% just to collect a check each month and call a maintenance person when necessary that is pretty steep. That's why I suggested the maintenance idea.
Your strategy of choosing tenants yourself is sound, nobody will look out for your investment as you will. As far as what is normal, I'm not certain. If I had to guess if you said you'd pay a management company and then do their work for them they'd be ecstatic.
Try calling a couple PMs in your area and see what they have to say. You may be able to negotiate a lower rate for fewer services.
You can have as much or as little involvement as you choose, you just need to communicate that to your property manager. Or you could try to find a maintenance person if that is more cost effective for you.
On your last point about legal issues, if your property manager was discriminating I'm not sure you would have liability. How would you be expected to know?
Thanks Dave. What would I expect to pay a maintenance person per unit per month to be on call and fix toilets and what not?
What might I pay a PM company to do everything except finding tenants? Around half their normal rate?
The main reason I want to choose tenants is to make sure they are great thus really reduce chance of problems in future. I am in a bad area. Is this normal for owners to show/screen and hire out the rest?
Happy to help Eric!
Cost for a maintenance person I have no idea. Perhaps you could find someone local who currently does this for several owners.
My 2 property managers charge 8 & 10% of collected rents. I don't pay any fee for them placing a tenant but this is common based on reading other posts, like Ned Carey mentioned. They also deduct maintenance costs.
If you turn over an already occupied unit and the PM is getting 8-10% just to collect a check each month and call a maintenance person when necessary that is pretty steep. That's why I suggested the maintenance idea.
Your strategy of choosing tenants yourself is sound, nobody will look out for your investment as you will. As far as what is normal, I'm not certain. If I had to guess if you said you'd pay a management company and then do their work for them they'd be ecstatic.
Try calling a couple PMs in your area and see what they have to say. You may be able to negotiate a lower rate for fewer services.
Eric, as a property manager I find what you're proposing interesting. I certainly understand why you want to take on that task and, if you can get a management company to drop or reduce their placement fee for new tenants, that's great. As for the ongoing monthly percentage for management cost, I can't imagine why I'd reduce my fees for that.
Further, I look at the danger of working with tenants that are placed by someone other than myself. I have taken over a number of rental properties from owners and other management companies and, more times than not, I have issues with the tenants that are already in place. Not a surprise since I'm usually being hired to resolve current problems. I would encourage you in this direction, let the manager do their job, tenant placement and ongoing management, with the caveat that you want to review and have 100% veto power over any tenant that they recommend for your property. I generally give that to my landlords anyway. I feel that it is their property and I want them to be comfortable with the tenants.