How to hire and manage a prop manager (extended stays+leases)?

Question

How do *you* go about hiring a decent manager? Where would you look for someone?

I imagine having to train someone up who wants to do this themselves... high level of quality control required. We've been self-managing for a decade and the time has come to pass the day to day management on to someone else. We're still next door, but focusing on other business growth.

We have 12 units, a combo long-term leases and extended stays in one complex of two buildings, so it's more high-touch than general property management. The manager could do the cleaning flips and some maintenance themselves, or they could coordinate and delegate these responsibilities.

Considering a base plus commission based on reviews and occupancy rates for an incentive - probably cap at $40-50k annually for a part-time position. Hours required are probably about 10 a week but varies.

Thoughts? Who has done this successfully? What common mistakes should we avoid?

Thanks in advance,

S

Account Closed · Answer

Great questions! We aren't looking to grow in the properties direction at this point - we have a second business (software company) that is going into growth mode. So it's neither currently building a portfolio OR running a property management company.

Since our properties are a bit of a unicorn (high profit model, but high-touch), it's hard to find a property manager who understands the model. Hiring an individual who gets hands-on training at the beginning will be essential. There will be more of a learning curve, but allow us to train them the way we want the work done.

Tanner Sherman · Answer

Sylva,

I think it really depends on your goals. If you want to start running a property management company then you should start documenting everything that you do in your business in order to hand it off to someone as a "how to" manual. You may already have systems that you do, but if you have to hold an employees hand through the whole process then you are just paying someone to still have to do the work yourself essentially. If you goal is to focus on building your portfolio and you are just trying to offload the burden of property management, I would get referrals from local investors and hire third party property manager that already has the systems in place. Another thing to look at when starting your own property management company is local law. Some states require that property management must be done under the supervision of a licensed real estate broker unless the manager has ownership in the property.

Hope this helps!