I was recently asked to manage a friend's vacant rehabbed property in NE Portland since he lives in L.A. Not sure how to price this out. I plan on taking the pictures, posting property to Craigs and Zillow rentals, pre screening tenants, showing the property, providing the application and lease forms and getting the lease agreement signed. Having the rent sent electronically to the owners' bank account. Light maintenance on the property for 1 yr. term. and maybe longer. Can someone let me know how much to charge for this effort and if there is any PM documentation templates that I could use to sign for scope understanding agreement? I currently manage my own 4 properties and will leverage my 17 yrs of experience owning property and my list of vendors and contractors. I feel confident I can get him a great tenant since the house is in good condition in a great area.
Thank you for any advice
Not sure, do they require a Brokers and or Real Estate License in your state to manage for others? That would be my first question before beginning on managing and leasing for others.
no i don't think they require any license. This is more of a friendship deal that I want to formalize in writing. especially since I have other friends with rental properties and might make this property management a side hustle job. what i learn on this project will help me decide if I like doing it. It will also be nice to be in different neighborhoods looking for buy and hold deals.
I did this type of deal a few years ago. We agreed on a fixed price per property that i would get each month ($75 per home, again this was a few years ago). I then received an hourly rate for any work i did for the property. Since you have properties you know most of the months you end up not doing any work. The majority of time i spent working on the homes was during a turn. Lots of times i just did the work myself, other times i was busy and hired it out.
It worked out well for both of us, they got a competent manager and i got a few extra bucks a month as spending money. My wife and i often lament letting this deal go, (we had to move across the country). Ha, so if anyone is reading this and wants a deal like this i could be available!
@Mike Savage Pretty sure this requires a property management license. You can check out ORS 690.010 Section 14 (h). This is because you would be engaging in Professional Real Estate activity as defined in the above stated statute. You may want to verify with a lawyer. If you do not accept compensation for helping your friend then it would be fine. Just letting you know.
(edit) - I'm just learning this stuff in my class for getting a Real Estate Brokers License...this question will most likely be one that is on my exam that I'm getting ready to take within a week. A license is not required to manage your own properties. Thought I would share.
@Mike Savage Definitely requires a license. There's a 'Property Managers License' that you can get in about 2 weeks for little money.
If you don't get the license and collect money for what you're doing, you probably shouldn't talk about it much..
wow. total news to me. maybe because i've always managed my own properties.
BTW I decided NOT to be the PM for my friend's house. It's just not worth my time. I should be doing more deals than managing someone else's mess. thanks for all the input. i'm awakening.