I have a property management property set up to call me tomorrow to discuss taking over the day to day management. I have 8 units currently. 7 are rented and the 8th was bought last month and it should be completed in the next month (total rehab)
I have managed the places myself but with 2 kids under 4, my wife working sales full time, and me having a 50 hour per week job I think it is time to let them go.
has anyone in central KY used them ?
when rented the 8 units will have revenue of ~58k. what % should I expect to give up ?
If your properties are in great condition, all newly rehabbed you might get away with only 5%. The management fees differ greatly and could run anywhere between 5% -10% depending on what you hire them for.
I assume you can still pay all the bills yourself, to keep the cost down.
Thanks @Lumi Ispas , I am debating having them pay all the bills too.
The question I have is that I currently have handymen that will do repairs for 20-50 bucks as they live near the properties. I usually text them and have them go over to take care of it and send them a check online. I will have to speak with them and see if an minor repair is going to be a $79 service charge or something. I CF ~$250 per door and I don't want to split that down the middle by getting a property mgmt company
I will just talk to them and see what they will charge you and see if they have the charges split by the amount of work they do, and then you can take a decision if it's worth it to you to hire them.
For picking up rents, you can have the tenants do direct deposit, so you don't have to do the trip to pick up the rents, and set up all your payments online from your bank account, so all you have to do at the beginning of the month, you go online and send the payments after receiving the rents.
Start creating an Excell spreadsheet with all the properties, tenants name, amount, beginning and ending of leases, amount of expenses (especially if the amount is the same), and as you'll start automatizing the process of paying the bills, your life will get easier and easier. You could also talk to your handymen to take the calls directly and just call or text you to approve the jobs and cost amount. They won't charge you any extra for that. Just set up the expectations that you are expecting them to return the tenant's call withing few hours and go to the property within 24 hours.
And as your portfolio grows, you can either hire a part time accountant, or property manager, or when the cash flow allows it just hire the management company if now you don't want to give up half of your profits.
Think this way, all the extra cash you save now by not hiring a property management you can apply it towards the principal of the highest interest rate loan, and will pay that property off quicker, which will give you extra cash flow in a short future.
I do have the tenants deposit money directly into a bank account. I do not get checks in the mail or visit them to pick up money. I do sit down twice a month and pay all the bills online (takes maybe 2 hours)
perhaps I could start letting them communicate directly with the handyman.
I have things pretty automated now but I have one new tenant that texts me every freaking day about little things at the place. super annoying.
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