Property Manager Compensation After Sale

[David Cooper]

Los Angeles area, looking for input from both property owners and managers of medium to large properties (30-75 units), especially if you have first hand experience with management transition after a sale.

I have managed a 50 unit RSO property in Sherman Oaks for 17 years, the family I've worked for is selling within the next few months. The brokers handling the sale tell me that most of the potential buyers have asked if I'd be interested in staying on, so I want to be prepared with a good idea of my value to a new owner, what I can reasonably expect as an offer and ask for in terms of compensation.

The rent roll is approximately 80K/month, we are mid market for area rents of 1br and studio. We have about 12 vacancies/year, which I typically rent within 10 days of vacancy. No evictions in 17 years, no issues with rent collection, excellent community relations and retention. 

My monthly salary is around $7500/month, and I live offsite. To be in compliance with CA law we have on site responsible parties who receive a rent credit of $550/month and a stipend of $500/month. So the total outlay for management is ~$8000, plus the rent credit. All told, roughly 10% of the monthly gross rent.

My duties include all advertising, showings, tenant screening, lease signing, and tenant relations. I do a significant amount of handyman work (light plumbing and electrical, oddball repairs) for which I do not invoice my time. I contact, schedule and coordinate with all vendors, keep insurance records for them, and source new ones as needed, and pay invoices from an account funded by the owner. I maintain monthly records of the rent and submit to the owner for their bookkeeping. I'm on call 24/7 for emergencies. 2 weeks paid vacation, but this is very loose - I have tremendous flexibility in my schedule, the owners trust me to handle things from afar. Our on site team is available for when I'm out of town.

If an incoming owner is interested in my staying on, is it reasonable for me to ask for the same or similar compensation? I have only ever worked as a property manager for this family, so I truly have no idea what my value is to another employer. I truly appreciate any insights you might have.

Thank you! - Dave 

[David Cooper]

Quote from @Nathan Gesner:

Quote from @David Cooper:

I don't think a license is necessary if they are an employee of the owner.

Your current compensation seems fair, but there are many details we can't confirm. I recommend you search Monster, Indeed, and other job sites to see what others are compensated for similar roles. I see property managers earning $120,000 a year, but I don't know how many units they manage, whether they do it alone or with a team, etc. You are the only one with the true details, so you'll need to research to determine what your value is to a new owner.

Hi Nathan, thanks for the input. I'm just hoping to get an idea of that from anyone in the L.A. area who has direct similar experience from the employer/buyer's end. I've checked on indeed, monster, etc and have gotten info from other people I know on the management end of things, but my situation seems to be unusual in many ways. Hoping the BP community can provide some further insights!