All Forum Posts by: Tristan Colborg

@Peter T. So with your company you just charge a flat rate?

What if I need you to meet the utility company at the property do you just do it?

Do you charge first month rent for placement? What about lease renewal?

Do you keep late fees?

What do you charge hourly rate for repairs?

What systems do you provide for your clients to monitor their property, maintenance requests, etc?

Sorry just trying to compare.

Some additional information...

My understanding on the larger maintenance work and the fee they charge is to manage the contractor/repair persons work. They made it seem like they generally get larger repair items at a discount then charge 10-30% to manage the process. If it is one of their typical vendors they use and know the work and they won't be having to follow up a ton with the vendor it is charged at 10%. If it is a vendor they don't work with and requires more hand holding and follow up they charge more.

As for they other fees it seems typical for companies to get a first month rent for new tenants correct?

Also from the couple I did talk to it seems typical for them to retain the late fees as well correct?

The only item that really kind of caught me off guard was they had this pet coverage that was different. Basically they collect a deposit for pets of $300 for damage and if there is more damage then $300 they cover it all up $2000, however they keep any of the monthly pet rent for the units.

As for the other fees they charge for setting up utilities/turn ons, rekeying the units if needed etc... Those I don't know if what they charge are typical or not.

@Kenny Dahill here was the information I received back on the questions.

When it comes to late fees is this something IIP keeps or is it split? Management retains all late fees collected from tenants

On the maintenance charges if I need service but your team is booked out and can't get there until the weekend, do I then have to pay the weekend rate? We don't book maintenance on the weekend unless it is urgent/emergency. If our team is booked out, we will book into the following week during business hours.

As for the larger repairs needed I see on the contract that you guys will charge the contractor rate plus 10-30% how is that rate determined? The same as for overseeing rehab, the rate may increase due to: increased oversight of the project; needing to shop project around to multiple vendors; getting a deep discount (usually based on volume we can negotiate, or through long-term relationships with our vendors). It is very rare that we do charge 30% and the contract goes on to say that regular repairs/maintenance are capped at 10%.

Also for rent distributions I pay $12 each rent transfer using ACH? Is that correct? Can this be negotiated at all, I know most ACH charges are $1-$3 dollars. Yes, we can reduce this fee if you commit to the ACH distributions, we want to encourage all clients to use the ACH feature

@Kenny Dahill thanks I will definitely reach out and ask them some of those questions. Those are some concerns I do have as well. Why should I pay $12 to transfer my own money with ACH? I mean a couple dollars maybe, but that is high. Also I get the labor piece and me not having to pay more if they can't get someone out there until the weekend. Anything else that stuck out for fees wise?

Hey BP community! I just closed on my first property and I am in the process of getting things set up for property management. I met with a couple of different companies, and feel like I know who I am going to go with. Their property management fees seem reasonable, but I have no experience to compare them. Below is an outline of what they charge, what do you guys think is this pretty typical?

To funny I was just reading an article from Brandon Turner himself and this is a direct quote from him.

"The best solution to finding a good contractor is find three good contractors. It's way too easy to get cozy with what you think is a good situation with a contractor. Competition is what drives price and quality. All of my contractors know that I know other contractors and because I am honest, respectful and fair, they are willing to give me their best⦠price, quality, attention."

I know some investors call three to five contractors to do a bid and tell them all the same time, both to minimize the hassle of meeting multiple contractors and encouraging lean bids."

@Victor S. @Mike H. That was exactly my thoughts on the situation. I felt like I either let them bid what they want with no scope of work I'm looking for, or provide a very detailed one so there is no question about what needs to be completed and we are on the same page. Looks like it is much more a fine line than I thought.

@Alex G. I agree Alex I think many people get degrees, go into debt and don't ever use their degree. I have two kids and honestly would have a hard time pushing them to go to college because of that simple reason. Either learn a skilled trade or go work in a field you have interest in and use the money you would have spent on college to start a business or invest.

@Justin R. Thanks Justin very helpful comments!

@Tal Perry thanks I really appreciate the comments and they are definitely relatable. Lol I mean isn't that how we should date people. Lol just kidding. Also my wife is a hair stylist and people are always coming in with pictures and unrealistic expectations of what she can do for their hair type. Lol