What can property manager do for remote investors?

8 Replies

I am looking to buy investment properties in Indianapolis. Can property manager take over as soon as closing, such as getting the key from seller, cleaning the house, cosmetic  repair, and rent it out? Is it too much? Thanks.

Aries

A good property manager can certainly take over as soon as closing is done. Your request isn't too much to ask at all.

I talked to a property manager my agent recommended.

They are going to charge 1-month rent for lease fee when they land a tenant, and 10% rent or $100 minimum per month per unit; half month rent for lease renewal.

They can indeed accommodate appliance delivery and manage small renovations, but that's going to be $60/hr. In house maintenance is also $60/hr.

My property under contract is in Franklin township. Does this fee look standard?

I spoke to 4 PMs there. They all have minimums but $100 is a bit too much.

The four i spoke to had 75, 50, 45 and no minimum.

Apart from that 10% is ok.

@Aries Li That's very typical in Indianapolis except for the $100 minimum, however, since you're property is in Franklin Township, I'm presuming your rent is at least $1000/mth so that shouldn't effect you. 

Originally posted by @Mike D'Arrigo :

@Aries Li That's very typical in Indianapolis except for the $100 minimum, however, since you're property is in Franklin Township, I'm presuming your rent is at least $1000/mth so that shouldn't effect you. 

Hi Mike,

Right. For single family house in Franklin is ok. For duplex, this minimum matters as rent is most likely less than $1000.

Your quoted fees are pretty standard, but there are certainly better fee structures. We have no minimum fees, but we are somewhat selective about the properties that we will manage. We also only charge $450 for tenant placement and $195 for lease renewals. Our labor rates are roughly the same, but $60/hr is a little lower than what I have seen from some of the other PM's in town. Also, Franklin Township is generally going to be a decent area. Good schools, plenty of conveniences, easy access to the interstate, and low crime overall. Depending on the home, they are also seeing a fair amount of appreciation each year as well.

As far as closing and timing... Yes, a good property manager should be able to get your keys the day of closing or the next morning and get the ball rolling immediately. For instance, I am meeting a realtor and Inspector at a home today that one of our current clients has put an offer on. If everything moves forward as I expect, we will get the paperwork ready a few days before closing, and get the keys from the realtor the day of closing, and begin addressing any concerns with the home. Most good property managers should be efficient enough to handle things relatively quickly.

Originally posted by @Aries Li :

I am looking to buy investment properties in Indianapolis. Can property manager take over as soon as closing, such as getting the key from seller, cleaning the house, cosmetic  repair, and rent it out? Is it too much? Thanks.

Aries

 Yes that should be no problem all of that falls under the scope of a PM.

@Aries Li Yes, these are all standard items for a PM. What you want to do is be incredibly detailed about the fit/finish/preventative maintenance/etc. that you expect for your unit. The more you can be detailed on “how” you want the property managed, the easier it is at the beginning as well as an ongoing relationship. An easy example is that I’ve told my PM to never replace carpet in the living room. When cleaning doesn’t work anymore I want it all ripped up and replaced with tile. She knows that. I will pay for an appliance repair once, then I want it replaced. She knows that. It’s up to me to set those expectations to enable her (my PM) to do her job well.

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