How much should I pay myself to manage my rental properties?

[Joe Shaffer]

Okay, so I am one of the newbies to this particular forum.

I have had rental properties for going on four years and in that time I have always reinvested 100% of net profit back into the rental business. A mentor friend of mine (who owns several successful businesses) suggested that I begin to pay myself a monthly stipend to compensate for time invested. In the first few years I was focused on growth but now I am beginning to think it may be time to take his advice and pay myself back for some of the startup capital and my time. From what I have researched it seems that property management companies seem to charge between 8%-12% of gross monthly income.

My question is for those of you currently compensating yourself.

How do you pay yourself? Is it just a flat rate or a percentage of gross sales? Or of net profit? Any guidance in this area would be helpful. Keep in mind that I would like to continue to invest back into the business and grow. Thank you in advance for your suggestions and advice!!