All Forum Posts by: Charles Kennedy

@Steve Boianelli thanks for the insight and reiterating @John Warren's point. We will be replacing all the flooring with a vinyl plank which will help in that aspect and also replacing all the doors that have wood rot. Additionally, we plan to inspect the fixtures and such to try and limit the calls when tenants move in. 

Thanks everyone for your input - those who have encouraged and those who has discouraged alike. I think I am set on giving it a shot as me and my partner are very young and can spare the extra time and weekends. 

@Natalie Schanne WOW! thanks for taking the time to write all of that. Since we are buying AFTER the school season has started we know vacancy will be a challenge until next school year and are hoping to get some leasing for spring semester, but have entertained the idea of AirBnB, but the following questions have stopped me from pursuing it:

• The purchasing/transportation/assembly of furniture
• Things will likely get ruined (sheets, dishes, furniture) will my cleaning lady/house mom really be willing to go out and buy these things and replace them? I guess I could compensate extra?
• The inability to turn over a unit if cleaner is not available on one day
• The insurance/liability aspect (all insurance companies asking if I will be doing STRs) 
• When electronic deadbolts dying before guests show up etc
• Replacing damaged furniture during turnover (who do you compensate to handle that?)

However, you seem to have solid systems in place and are strongly making me consider it for a unit or two... 

@Jeremy Bartlett

We have decided to give it a go based on having a handyman and realtor in place. We will compensate our realtor $300/lease to show and handle lease signing and coordinate with handyman for any minor repairs and reach out to others when more specialized repairs are needed. Maybe it's a mistake, but hey as @Dennis M. and I said, I can always hire one later. 

I'll try to remember to check back in a year and let you know if it was worth it!

@Dennis M. thanks. Me and my partner are going to give it a go. We have our agent who will do showing and we will compensate him for signed leases and I'm going to reach back out to two of the handyman I spoke with previously to let them I plan on using them regularly for odd repairs, etc. 

@Russell Brazil thanks for your perspective!

@Russell Brazil What things required you to go down there? What kind of gross cash flows was it throwing off? I think 10% of a single family that is rented for $1200 vs. a quad that rents for gross ~$4500 makes dealing with it worth it. I realize I have more units and more points of contact, but you get some economy of scale with all units being in the same place. 

I am under contract on a quadplex near a university that is 4 hour drive from me. After speaking with some property managers, I'm realizing they really know how to tack on the fees... 10% (expected) of all revenues, 1/2 months rent for first lease, $400-500 for new leases thereafter (which most will be), $200 for renewals, $500/unit cancellation fee, no late fees passed along to me owner, some have $50/unit vacant fee! It just seems like this may add up to be 15-20% of revenues.

This has me thinking how hard can it be to self manage? I will be down there for closing to do some basic work and then back down there once the contractor completes the rehab we are doing, at which point I could take pictures and list the property on postlets. I could create a FAQ sheet for potential tenants. I could compensate my agent to show the property. I have spoken with nearly a dozen handyman and contractors regarding the rehab and one I liked said he would be happy to do any repairs on the property (wasn't a good fit for the rehab). 

I could have my handyman perform basic repairs, deal with any onsite issues and compensate him accordingly. I can collect/screen tenants via Cozy.co. I would still visit the property 2-3 times a year as my alma mater plays this team once a year and it's not THAT far. I could create/provide a move-in checklist, move-out inspection that handyman could deliver and perform the move-out inspection and perform need repairs as well. I could provide a move-in document that would have tenants e-mail me for non-emergencies and phone # for more urgent matters.

On top of it all, I figure I can always just hire a PM at if this isn't as easy as I think it is... 

Am I crazy for trying to do this? PM fees seem like they will be adding up to $7500+ a year ($5,400 in % fee and another $2000 in new lease fees), which doesn't seem justifiable to me...

@Caleb Heimsoth thanks Caleb. I agree I will not take a worse PM company that is doing 8% vs. 10%, but if I can get the best of both worlds, 2% is another $90/month. I agree on the utility, as someone that does have a submetered property wouldn't have to pay this fee. I guess when I interview PMs I will just have to see what the market is like! 

Thanks.

Hey BP,

A friend and I are under contract on a quadplex and in our proforma have assumed a 10% management fee. However, we are projecting rents of $1,125/unit or $4500/month. With a property that brings in so much income, do we have the potential to have a fee less than 10%? At what point will a manager consider taking less than 10%? 

Additionally, we will also plan to have a $150/month utility fee as units 1/2 are submetered as one and 3/4 are submetered as one. Would the property management company take 10% of this as well?

Finally, what are the main things YOU look for when interviewing property managers?

@JR Rivas and @Sam Collins - either of you happen to know GCs in Tallahassee? Appreciated!