Property Management Question

4 Replies

Hi there!

I am considering taking over my apartment as property property manager. I have allowed my manager to manage the building for the last 5 years, but feel like taking over would be a good learning opportunity. Any advice about taking over property as manager would be greatly appreciated. It sounds like my overall moral in the building is pretty low right now due to some issues between the tenants and the manager. Also, wondering if I should start up a separate LLC for a property management company? or should I just take over as landlord? I don't want to reveal myself as owner.

I always tell people that if you have the desire, knowledge (or willingness to gain it,) and the time, then go for it.  

Your basic questions show how ill-prepared you are to self-manage:(

It may be wiser for you to better manage your PMC instead of going DIY. Figure out what the challenges are and see if they can implement your suggestions to improve morale.

If they are incapable of implementing reasonable improvements, than start interviewing other PMCs to hire.

If you're set on DIYing and wish to hide your ownership from the tenants (which we recommend 100% of the time), then yes, put the property in a single-member LLC. Just don'e put your name or address anywhere in the name of the LLC and have someone else be the registered agent.

Originally posted by @Natashia Henderson :

Hi there!

I am considering taking over my apartment as property property manager. I have allowed my manager to manage the building for the last 5 years, but feel like taking over would be a good learning opportunity. Any advice about taking over property as manager would be greatly appreciated. It sounds like my overall moral in the building is pretty low right now due to some issues between the tenants and the manager. Also, wondering if I should start up a separate LLC for a property management company? or should I just take over as landlord? I don't want to reveal myself as owner.

If you think you will enjoy managing, give it a try. I personally prefer for my tenants to know that I am the owner of the property and that the buck stops here. I use a post office box for my business so there is no need to give out my home address. Tenants seem to appreciate dealing with someone who can fix problems and doesn't pass the buck. One of the most useful things I have learned is for most upgrade requests, to say yes, we can make that happen, followed by, If you are seriously interested in pursuing this upgrade I will let you know the additional cost in rent each month-- usually I am looking for a 30-36 ROI. The other really helpful hint for a new manager is not to scrimp on property management software, even the expensive software is way cheaper that a full service company and I have found it to be worth it.

 

I would recommend starting a separate LLC. It is cheap insurance. Agreed taking over is an excellent learning opportunity. It will help you boost your margins by a) not paying a PM fee b) learning what needs to be done and preventing issues before they arise c) knowing your building well if you hire a PM in the future and they try and "pull your leg"