Feedback on my property management co-op idea

[Jacob Sampson]

I'm sure this isn't a new idea.

I live in Topeka, KS.  I own 16 units and have a full time job.  I'm not handy and so, although, I self manage, all maintenance is outsourced.  I want to grow much bigger but mine and my partners job's pay really well and replacing that income is not in the near future.

I had an idea to start a property management co-op where local, small time landlords like myself would pay some flat % into the PM company and that would handle all costs except for materials.

At the end of each year we could pay back any cash each individual member did not spend or the cash could build up or the PM company could purchase office space to operate out of and begin to grow it's own assets.  Any number of things could happen.

The main goal being to allow members to offload management of there properties for cheaper than a traditional management company.  Secondarily, possibly taking on other landlord properties in a more traditional sense to offset co-op owner expenses.

I see many problems with this idea but also some great options from it.

What are your thoughts about it?