hiring prop managers on MF

[Joe Smith]

I presume that I can remain a passive investor in multifamily...are management fees similar percentagewise to SFR and 2-4 unit?

Also, if a building is of he size that it needs a resident manager, can I have a management company take care of that, so I can avoid the hassle of hiring actual W2 employees?? And...does that increase or decrease management fees?

[Joel Owens]

You can build in a bonus system for the PM based on metrics achieved.

You give them a low base and most of the income is performance driven.

A good PM won't take issue with that but a lazy one sure will.The larger apartment buildings pay a bonus to the manager based on occupancy levels,rent collected,keeping turnover low,screening tenants properly with security deposits etc.

If you are paying them regardless they have nothing to strive for.They don't really care about your property that much but most will care about a larger pay check to them.

This goes back to would you rather get a print out employee of the month certificate or a 200 bonus?? People want the money and most of the other stuff is crap.More money motivates most people to perform.

Dumping a ton of crap on them with no incentive other than what you are already paying them makes them feel like a used whipping post.