All Forum Posts by: Chad Hale

Property Management fees are all over the map and are often negotiable.

Personally, my fees are typically between 5-8% gross rents for residential properties.  No other markups or add on's.  I try to keep it as simple, transparent and aligned with the owners goals as possible.  They don't want vacancies and neither do I.

There are pros and cons to using a PM or self managing.  You need to find what works best for your specific situation.

@Jen L. 

My move out costs have been under $350 each in the San Jose area the past 4-5 years.  I have had several move outs at under $10 (Have to rekey the locks).  The tenants left the properties in perfect, clean move in ready condition.  

For me, a lot of it has been due to tenant selection and education.  My leases are about 40pages ( Use a detailed Move In Move Out form + pictures) and I spend nearly an hour at each lease signing.  I explain my expectations for the property and tell the tenants that I want to give them their full deposit back.  All they have to do is return the property to me in the same condition that it is in now.  I also explain that I want to know about any items that break when they break.  It is not acceptable for me to discover these things on my own later.  If something breaks that is the tenants responsibility in the middle of their lease, I have them pay for it immediately.  I don't delay thinking I'll take it out of the security deposit later.  I want the full security deposit to be available at move out.

All that being said, problem tenants can still occur even with the best screening and expectation setting.  But they should be the rare exception.

Hopefully, you'll be all fixed up and rerented soon.  That is one of the good things about the bay area.

Chad

What types of things are you considering to require an architect?

Sent you a PM

You can check craigslist or other sites that list rentals to get current comps.  

rentometer.com is good for ballpark numbers.

BP article:  https://www.biggerpockets.com/rei/fair-market-rent...

@Osazee Edebiri  Star One Credit union in SJ does free coin processing if you are a member.  A fee (not sure how much)  if you are not.

To the others not wanting to collect coins, I visit every property at least once a month to check on things. So no extra effort to collect the coins.   Only effort is one trip to the bank to deposit coins once a month

I have/manage properties that own the machines and others that rent.  Pros / cons to each.  The properties that have rented machines are hassle free in that any issues are taken care of by the rental company at their cost. Of course the downside is potentially leaving some coin on the table.

Sent you a PM

Welcome to BP.

Lots of great people and info here.

And the bay area is a fun real estate market to be in, congrats!

We are currently expanding our Property Management services to new clients and partners in the greater San Jose area.

As a local investor, owner and property manager, I understand the importance and value of your property.  Your property is likely crucial to your retirement planning, financial freedom, and your family's future. Regardless of your specific reasons, you want the best use and value from your investment to achieve your goals.

We believe in treating everyone's properties like our own.  Integrity and honesty are the bedrock of all our relationships, from the client to our vendors and maintenance teams.

If you are in need of or just considering using professional property management services, please call or email to discuss how we may be able to help you reach your goals.

Sincerely

Chad Hale

Westmont Real Estate Services

www.westmontdevelopment.com

[email protected]

408.420.6773

BRE: 01878782

@Joe Kim Regarding your reframed question.  Thanks.

"I should have framed the question better. If can get an agent to work at their FULL potential for the full price of 1 months rent ($3000), then that would work great for me."

In my view it comes down to finding someone you trust, who operates with integrity and is working their best for you, their client (partner) whether you are "watching" or not.  Their goal is to make you successful.  Which turns out will also make them successful.

As a PM, I typically charge a flat percentage of gross rents for PM services with a monthly minimum. It covers everything. There are no other fees, no hidden fees, no account setup fees, no leasing fees or other extra fees for various services or items. I do not mark up maintenance/work invoices. The only thing not included is eviction costs. Lawyer and court costs would be separate for example. I try to make this as simple and transparent as possible. I get paid when you get paid.

Regarding the number of hours to find a qualified tenant.  It can vary quite a bit.  At a minimum:6-8 hours.  You get a qualified tenant immediately that passes all application/screening/background checks, with a single showing, no other inquiries to handle and a quick lease signing.  On the other extreme, it is December, qualified applicants are not showing up requiring lots of additional phone calls / emails / advertising and showings, etc.  This could easily consume 35-50 hours.   Call it an average of 20 hours.  Your three properties divided by 60 hours (20 each) at $8k = $133/hour.  Good money sure but there is a lot of variability/risk.  Also, a PM assumes the tenant liability in terms of fair housing and other constantly changing laws.  As an aside in an ever increasing scam prevalent culture, several tenants that I've placed were more comfortable knowing that they were working with a licensed professional using standard forms.  There are lots of other posts/forums for/against using PM's so I won't delve further on that topic.

Property management is a lot like being a pilot.  It is easy and straightforward until it is not.  Then the training, skills, ability, and experience are worth everything.

Chad