Seeking advice on becoming a part-time property manager for STRs

[Leon Lee]

Hi, fellow STR investors and managers

A friend reached out and asked me to help manage her 20 STRs recently. A third of the portfolio are 2 hours away. I am currently managing 8 of mine myself and can handle them ok. Before I say yes to her and sign a contract, I wonder whether I could get some advice from you all: 

1. How much labor and time are required to manage close to 30 STRs (including 7 semi long-distance ones and I have at least 3 setting up by the end of the year)? I am planning to hire someone part time (by hours) and get some help on book keeping via virtual assistance, but would like to hear some inputs from those who have done it before. I feel automaton and system are key, and trying to systematize everything possible. 

2. What is the norm to calculate commission fee? If someone charges 25%, is it 25% of gross rent (including cleaning fee) or without cleaning fee? 

3. What are other fees associated with the PM? I could see that design fee ($3K), new property setup (15% service fees), repairs and maintenance (10% service fee). How are routine furniture moving and replacing best handled? Should I hire them all out and bill the owner?

4. Are there other important points that I missed?

Although this property management role is still a job to me at the moment, this gate keeping opportunity may get me into the RE investing full time one day, by for example expanding into a PM business, getting more deals, etc.. Any thoughts from this (possibly naive) plan?

Any suggestions/inputs will be appreciated and love to connect with other fellow property managers!

Lee

[Drew Sygit]

1) Are you properly licensed? Many make the mistake of assuming you don't need a real estate or brokers license to do STR, but evey real estate expert we've checked with has stated if you are performing real estate activities, you must be properly licensed.

Of course, you can always take the chance and hope you don't get sued.

2) You'll need a strong property management contract covering your charges, what you will and won't do.

3) Suggest you look online for STR groups to join for better responses on the rest:)