Property Management Help!!!!

[Adrian Williams]

My broker just called me and said that she wants to start a property management company and wants me to manage the day to day operations of that part of the company, I have never managed a large amount of houses so I was trying to see if anyone had any tips or could point me in a direction to learn more about the property management business, (rates where you are, software that may be beneficial or just more information ,) I live in Kansas City Missouri , I know she told me that the key is staying organized because we can be audited by MREC anytime.

Thanks In Advance ,

Adrian Williams

[Joel Owens]

Remember the audit is there but the big x factor is the lawsuits.

E and O quotes higher rates for property management.Even if the landlord and or the tenant or BOTH are at fault they almost always blame the real estate brokerage.

Sometimes it is merited and many other times it is not.

So to run a property management company you have to be very meticulous with everything.Many investors are out of state so they will want turn key management (one stop shop).

Rates will depend on what type of asset and the size.When you go to IREM there is different training for different classes and sizes.

For example the scope and management on a 20 unit apartment building will be very different from a 200 unit complex.

Generally for apartments fees are 8 to 10% for 50 units and below and 50 units and above 5 to 7 percent of gross rents.

Retail can be as low as 4% management fee.

Houses you will be competing with low ball agents who are having a hard time selling real estate.The problem for landlords is once the managers start closing real estate sales they could care less about the rental.

This is just like many agents doing bpo's now and when sales pick up they will dump doing the reports fro 50 bucks.

If you want to be serious about management do it full time.In my area for houses the most reputable companies charge about 10% plus half of first months rent for houses.

It's not about what you charge but what you provide for that fee.You will get landlords trying to squeeze the management fee because they overpaid for the property.

That is not your problem when taking on rental property.

I don't do property management but one of my broker friends manages over 400 homes with 10 property managers for his company.He likes the residual income it provides.He also land sales off of it as a side benefit.