Practical Questions for Small Multifamily

[Kristin Boekhoff]

I am about to purchase my first small multifamily (5-unit) property and plan on initially managing it myself. I have some practical questions:

1) How often do you clean the common areas?

2) How often do you do pest control treatments?

3) What are the rules around snow removal? (I live in Florida, we don't have that here! :) )

4) Do you heat/ air condition the common area? (Which is just a hallway/ staircase plus the basement where the laundry is as it is a 3-story rowhouse walkup; right now there is no HVAC at all - it is a large rehab project.)

5) Are there any discounts for leasing fees usually if the agent is leasing multiple units? (The tradition here is one month's rent for the fee.)

6) How does trash normally work? Does each tenant keep their own garbage can and then put it out every week? Do you have a common dumpster? (And if so, how do you prevent everyone in the neighborhood from using it?)

Thanks!!

[Drew Sygit]

@Kristin Boekhoff to add to the great input from @Jason Taken:

1) To save money, you really want to clean as little as possible. Weekly might be a bit much. In our experience you can get away with every 2-4 weeks depending on the weather and tenants. 
- Often, you can pay a tenant to do the cleaning. Do NOT give them lower rent! Have them sign lease at full amount, then give them a monthly rent credit. This protects you if you have to fire them.

2) Pest treatments would depend on the location. In Michigan, we don't have to treat at all - unless tenant brings in bedbugs or cockroaches.

3) Snow removal depends on building layout. We have buildings with no parking lot and private entryways, so tenants are responsible. Otherwise contract a service for the season that will automatically take care of for every snowfall.

4) YES you need to heat them! Otherwise frozen pipes may happen. Often electric baseboard is most cost effective. Just make sure only YOU have access to thermostat.

5) First understand that leasing is a DIFFICULT job! So many prospective tenants don't read ads and call/text/email with the most ignorant & stupid questions, 24/7/365. Then a significant percentage are No-Shows for showings. Often you have to then chase them for application docs. Keep in mind, tht 50% of the fee is usually offered to other agents that bring an applicant that gets approved.
- All that being said, you can always negotiate, just be realistic.

6) Call the city about the trash. Do they pick up or will they require you to contract with a waste company that will supply a dumpster and handle pickup.
- If you get a dumpster, neighbors dumping in your bin may be a problem, depending on the location. It's a difficult challenge to catch & try to enforce:(