All Forum Posts by: Jake McCain

3-5% of gross collected revenue or a minimum amount (whichever is greater). 

Common fees that could be in the contract: 

- Collected late fees - shared 50/50 with manager 

- Lease renewal fees  - If allowable by law, your manager negotiates renewals at a 1-1.5% of the lease value. 

- Mileage - Some PM's like charging mileage associated with the building. 

- Tech Fees - Usually $3-$5/unit a month 

- Printing and Postage - Only as needed. 

Interesting. Following your thread out of curiosity. 

I would grind it out (with a structured plan). You will need to make some tough decisions in the near future. Look at where you want to be in 5 years and work backwards. The skills that it takes to get out of your situation will help you be a great operator when you get to your ultimate goal. 

Hi Andrew, 

Columbus or KC area? Sounds like you meant KC. 

Hire a property manager. Managing from a different state is very difficult. 

For what your looking at probably 6-8%

The right deal can pencil in any area. Do some research on these areas. I personally, would probably look at Gladstone before the other 3. Reach out if you have any questions. 

Welcome to the community, Evan!

You could require a larger deposit and/or you will need: business name, EIN,  a couple years financials, a bank statement, a pg maybe would be nice. Anything they are willing to provide you that shows they can make the payment/decrease your risk.  

Might check to make sure the individual signing has authority to sign the lease. Identify who your point of contact will be for the lease. You don't want to get stuck with no one to communicate with for any reason. 

I'm not an insurance professional - but I would probably require a commercial general liability policy w LL as additional insured. 

This can vary depending on the property type and how involved the landlord wants to be. On the commercial side a good property manager takes care of your day to day -  regular maintenance, rent collections, dispatching and paying vendors, tenant issues, scheduling notices, collecting coi's, showing suites to new tenants, possibly renewing tenants, etc.... They keep the owner informed - typically through weekly updates on these tasks. 

Budgeting/Estimates/Reconciliations - Good PM has a full understanding of the financial operations of the property and how to meet the landlords goals. They know the projects they plan on doing for the year. They budget effectively and accurately. They don't miss reconciliation or recon deadlines and they are accurate. 

Lease knowledge - On the commercial side PM's have to understand leases to a great deal. A good PM has to master a range of structured lease types - NNN, base year, modified, gross- and navigate their nuances to protect interests.

Managing projects- Collecting bids is a large part of the PM's job. Tenant improvements or managing capex projects are something a solid pm helps steer and make recommendations. 

Communication is a huge part. A good manager communicates to the Landlord and tenants with intention and timeliness. Providing enough information for the landlord to make good decisions and tenants to feel supported. 
 

Hello there. Sorry to hear your going through this. 

Its hard to say without seeing the whole lease. If the lease/law allows, I'd inform her LL will terminate the lease in x days. MTM leases usually don't require cause. 

Sounds like you are repairing the stairs in the meantime. Good move. 

Keep good documentation of everything. 

*I'm not a lawyer. You might contact one, just in case*

Hello! Congrats on deciding to get into property management. 

I have a bachelors in business admin and marketing. It probably didn't hurt having the degree (checked a box). Although, I have property managers on my team with only a high school education. In fact, one of the strongest property managers I know has a high school degree and nothing more. In property management you learn a lot by simply doing. Surround yourself with the people that excel at the job and learn from them. If you go to the right shop, they will teach you how to operate. 

APM roles are a great place to start and learn the ropes. You have to grind for a year or 2, but it's worth it. 

I hired a guy last year - He found my email on my company page. Sent me an email and asked how he can get in the business and attached his resume. Not every day you see someone that really wants to get into property management. Most smaller local firms would take that meeting.
I'd encourage an approach like the above. Allows you to ask the questions you have to local leaders in your space. 

Good Luck! 

Nice work! What was your lease up strategy? 

Out of curiousoty, did you have 9/10 tenants with leases expiring right around COVID?