All Forum Posts by: Christian Hansen

@Derek Parsons  Howdy and welcome! Dive into the Podcasts they are excellent.

Tonya,

Welcome! I am in the RTP area of NC, doing some investing and I just started a property management co. I would be happy to connect with you and try to answer any NC specific q's.

Theres lost of good stuff on BP. Enjoy.

So glad I found this post! I am in the very early stages of setting up a property management co. here in the RTP area of North Carolina and will be targeting owners with multiple investment properties so the point/gripes you all are providing are super helpful. I am hoping to run a business where the clients are happy and feel they get value, of course I am not doing this for charity so need to make my money on this. My initial plan seems to resonate with what many said, higher % on the main fee and less "nickel and dimeing" I did want to use my own maintenance group so I can capture that revenue stream but be competitive in price with outsourced labor. I would still use outside licensed Elec, plumbing, HVAC  vendors when needed.  

It is definitely a relationship where abuse can take place under the guise of "maintenance" and I suppose only time will create a level of trust.

I would be very open to hearing any other tips or things you would want from your PM co's so I can apply them in my new venture!

Christian Hansen

@Jason Burr Thanks! I have been thinking about this exact thing for a bit now for the same reason, my mind is spinning looking around for all the tools I will need at a property! It's very draining and frustrating when you don't have the tool(s).  I just watched a couple minutes of one of his videos, that is a serious setup he has.

@Hannah Robie  Thanks for the note! I am sure I will need a bit of luck ;-) 

What software do you use and would you recommend it? Something fairly robust that can handle a few hundred units and hopefully do most of the rental process as well.

Thanks

@Mike McKinzie Thanks for the comments, I totally agree with you!  My goal is to use as much new technology to streamline the process and keep information flowing as quickly as possible so owners know whats happening. Good communication is the key to any relationship.  I think this is especially true up front where I want to be very clear about fees and NOT have the surprises later, I think PM co's get in trouble with attracting clients with low %'s and then have to make up for it with these mystery fees later.  I want to provide good service but I will only do it for a fair price, that way the relationship stands a chance.  

I do think maintenance is a really important part because if the properties are kept up, they will rent faster and the maintenance calls should decrease going forward making it smoother for all parties.  It seems that this piece is left out of many models and it's all about just the rental process.  The reality is that houses/building need maintenance and if you catch it early its a lot cheaper. But as you say it has to be charged fairly.

BTW: Can you tell from the reports you get from your PMs which software they use and is there one that seems to benefit you more than others? 

Thanks again!

@Ricky A.  well, I think there is still some room there where I would be willing to manage them but when its gets down to the ~ $350/mo. range the percentage would have to come up. The problems and the time to solve them are likely about the same as at the $800.- level.  But we both know the margin is also better at the lower levels so presumably there would be some wiggle room on the percentages. At that lower rent level, I would also stipulate that I would handle all maintenance issues.  I'll keep you updated on how this plays out. Stay safe out there in the ice.

@Karen Rittenhouse

Thank you for the supportive comments!  My thinking is the same, you can find low monthly fees but in the end it may cost more if the service is only about collecting rents and leasing units.  I think preventative maintenance and prop inspections can save thousands of dollars for the owners.  I will be looking up all those meetup groups etc.

BTW: are you by Chance related to Nathan Rittenhouse? he has a advertising / video production co. in Durham?

@Dawn Brenengen

Thanks for the feedback. I was thinking the same thing and am willing to work with owners of lower cost housing.  

@Eddie Marcano

Yeah, that seems annoying if you are trying to budget management fees at a certain % and then the actual dollars spent are higher.  Would you be willing to elaborate on the types of fees? I want to build a business that serves owners for a fair price not use gimmicks to nickel and dime folks, so it would be helpful to know.  My impression is that the monthly % should cover most administrative costs which should be fairly predictable and the additional costs would include repairs/maintenance, lease up fees and eviction costs. Stay warm up there I hear its gonna be REALLY cold, tell your tenants to let a faucet drip somewhere in the house. Thanks.