Quote:
Originally Posted by epitome
I used to own one. For 7% we handled everything ... owners only had to check their mailbox for monthly checks. The lazy ones elected for direct deposit which meant no trips to the mailbox or bank. We also had a 15% markup on any maintenance or renovations done by an outside company although smart owners elected us to do it in-house which always ended up being cheaper.
Property managers tend to either be great or suck. With my company it wasn't above me to go out to all properties at 2 AM in order to shovel snow so that the homeowner would not be fined the next day (the law is typically that snow must be cleared 4 hours after it stops coming down).
People that turned over their entire investment portfolio to us could negotiate us down to 5%.
It is important to spell out EVERYTHING that you will receive (or not) in your management agreement. Ours was 15 pages long ... some companies use a single page -- they are the ones out to fuck you.
EDIT: Sly, I've always liked you, so feel free to hit me up tomorrow or Monday or ICQ to pick my brain.
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7%? That would not even cover the costs of mowing the lawn, never mind the cost of snow removal. How did you do it so low?
Taking care of a house rented for $700/month would bring in $49/month and $588/year. Mow the law twice a month? Snow plowing 15 days a month in the winter? How do you make money?
I would like more info too. With construction way down I was thinking about expanding into this area to keep some of my guys busy.