Managing a property for an aquaintance

5 Replies

A friend of my girlfriend is moving out of state and wants to rent out her home. She's asked us about managing the rental for her. While I'm comfortable with managing my own, what are the considerations for managing someone else's property (specifically in Alabama) ? Are there any licensing requirements ? Should I form an LLC just for that purpose ? Or should I just politely decline ?

Thanks in advance!
- Mike   

get a soldi management agreement in place so you know what you are agreeing to.  what is the charge for leasing? Management, what happens if there is a big insurance claim for you to deal with, et.c  What are your responsibilities if tenants dont pay.  what will you do to rehab the property. etc. 

Originally posted by @Michael Balducci :

A friend of my girlfriend is moving out of state and wants to rent out her home. She's asked us about managing the rental for her. While I'm comfortable with managing my own, what are the considerations for managing someone else's property (specifically in Alabama) ? Are there any licensing requirements ? Should I form an LLC just for that purpose ? Or should I just politely decline ?

Thanks in advance!
- Mike   

Alabama requires a license. I would politely decline unless you want to be at the beck and call of tenants that aren't even yours. Believe me, it isn't worth the 10% you could charge unless you are doing it at volume. It's a great way to ruin evenings and vacations with your loved ones. Most people only build the systems necessary to avoid this once they are doing it at scale. 

If you don't want to feel like you are leaving them high and dry, research some highly reviewed property management companies for your friend, and refer them to those companies. 

Make sure to read Alabama residential real estate management statutes. You may be able to find a creative and legal way within them to satisfy your friend. 

For instance, you could handle the maintenance and inspections, but have them hire an agent to find new tenants.