All Forum Posts by: Brad Larsen

There are a ton of software to consider: Appfolio, Yardi, Propertyware, Buildium, RentManager, RentVine, and probably a few more that I am missing.  These are the ones we see a lot in our industry.  Hope this helps! 

We look to break even.  To do this, you put the least amount down into the property you can, and you keep it rented to cover the expenses.  You win big time on the Depreciation write offs, and of course the eventual Appreciation.  This break even eventually starts to turn into cash flow as the rents go up.  The concept of replacing income from work with cash flow from rental properties starts with large amounts of cash.   Those only make sense to cash flow.  

If you are starting with a little, get in with a little .... and be happy to break even.  

It's worth looking into as that company was modeled after the same business in Australia which was and still is wildly popular.  Nothing will cover all damage, but knowing the really awful stuff could be covered is atleast some piece of mind for the small price you pay.  

The industry keeps hearing a lot of buzz about the biggest real estate player in town - Keller Williams - getting into sanctioning / sponsoring a property management faction of their real estate sales franchise.  I keep asking the question, but nothing has materialized on the surface.  Has or IS something happening now that outsiders do not see?  My point?  If they are offering up their good name to conduct property management under....I might be getting in line for that opportunity.  

@Pierce Fonville  Would be curious what part of Texas you are in?  Agree with mentions above, if you are starting your own PM "company" inside of another Broker's license - you are basically starting a division.  Rightfully so, most independent brokers or even franchise type brokers would not want you there competing with them.....or causing them more headache because of all of the rules / regs that go with property management.  

@Cameron Riley  2nd vote for wanting to hear more about the unfair property management fees you mention.  Just trying to learn as I really want to find out more.  Are these fees being charged to the owner?  To the tenant?  Do they serve a distinct purpose and pay for the service that investors demand?  Please elaborate.  Thanks in advance. 

@Clark Michael  If you are serious about starting your own fee based 3rd party property management system you will need to find a good mentor and do whatever you can to get them to open up to you.  Maybe you simply join NARPM and start hanging around their meet ups or conferences....asking a lot of questions.  People there are very helpful and don't be afraid to tell them you are new.  Go with these first 2 things and they will tell you all of the context specific things that YOU should do to be successful in this venture.

I would not say "a lot" of people are moving to Self Managing their own investment properties.  It would appear just the opposite.  With more regulation coming on all the time (rent control) - dealing with Fair Housing laws, service animals, insurance, and regulatory agencies - finding a quality Property Management company is worth the effort.  

Starting your own PM company to service your own rental homes is why a lot of PM company owners get into it.  The extremely basic numbers put at you from above are guesses from the outside.  Property Management is the only true business in the business of real estate.  Everything else is commission based from development to sales to lending.  They are all chasing the next deal.  

Your profitability will not happen until near 80 units with an average monthly income of $100 / unit.  (I did my whole MBA final study on the PM Company model).   Plus, I am a Property Management company owner.  In the beginning, there is a lot of start up costs.  There are side costs you can't even predict.... from the cost of software, to labor, to insurance, to phones, to websites, to signs, to office space.....you name it.  

If you can build a great service, the clients will follow and after time....you can build up a good business.  I say if you have the mindset to 100% fully commit to starting a Property Management company - do whatever it takes to delight your clients with great service.  (It is a challenge!)  The rest will follow from there.  

@Nicholas Q.  Ran across this post and wanted to throw this article at you for some inner reflection.  Good advice above is to pick which lane you want to be really good at...investing....or managing.  People think it's so easy to be a good property manager.  I love the spirit of those people, the do it themselves folks....it is what makes them great.  But, I would offer you encouragement to focus on what YOU do, or want to do best.  Just accept that other people will do a job at 80% of what you could do it at.  (Scott Fritz, the 40 Hour Work Year)

Here is the article:      https://www.biggerpockets.com/forums/52/topics/402958-investors---are-you-a-c-class-landlord?page=1#p4096905

Everyone seems to complain about the Property Manager, with some complaints having merit.  This is a look at the other side on how investors are seen by Property Managers.  Are you a "C-Class" landlord? 

https://www.biggerpockets.com/forums/52/topics/402958-investors---are-you-a-c-class-landlord