Help on hiring a property manager

[John Matarazzo]

Hi all,

I am a rookie investor, have been managing my duplex for 1.5 yrs. However, recently have been assigned out of the US for work and I'm not able to keep up with managing it while out of country.

Other investors in my area have recommended a PM company, since I am new just wondering what questions I should be asking that I may not be?

Fees they would charge
- 8% on monthly rent collected....if a late fee they keep the late fee
- $400 for placing a new tenant with 6 month guarantee in case tenant breaks lease within first 6 months
- From their contract: "In-house maintenance staff is provided to you at double the hourly wage with all materials billed at cost and no trip charge; this includes maintenance at cost, company vehicles and vehicle maintenance, vehicle insurance and gas, tools, worker’s comp, GPS tracking, 24- hour maintenance call center, around the clock in-house emergency services"

Please let me know thoughts and advice on the above. Thanks.

John

[Will Fraser]

I generally disagree with PM companies keeping 100% of the late fee unless they are providing some sort of "On Time Every Time" gaurantee to you where you receive your distribution regardless of collection, which is a tricky thing altogether.

Assuming that's not the case then a split of the late fee seems more equitable.