Property Management Co. getting started with a new client

[Dominique Nugent]

I'm currently looking to start a Property Management company. I have multiple people that own multiple units that need a company to manage their properties. As I work everything out there are still some questions that I prefer not to get from Google.

Is there an initial fee management companies charge new clients with preexisting properties besides the monthly percentage to manage them when starting new business? How do they typically charge and when do they bill the client for things that need to get fixed on the property? What monthly percentage does the management company typically collect from the monthly rent?

I understand that each company is different and handles things differently. I'm just curious to see what you all pay, charge, or have observed.

Feel free to add any advice or anything that will help with your responses.

Thank you for you time, I appreciate it.

[Christine Kankowski]

Part of our california broker rules is that we are not allowed to discuss pricing, but I can give my recommendation to have a very detailed mgmt agreement in place with your owners  

who takes care of Insurance payments, claims, repairs, tenant issues, HOA violations, When do you pay the owners> Do you keep a reserve from them to pay for repairs? Do you still need to get approval on repairs, or can you just go ahead and do them? Are you doing full background and credit checks on new tenants? Do owners get a say? Breed restrictions on pets?

Do you handle the gardening?

Make sure you get all the leases from tenants and payment history prior to taking over. 

Do you handle evictions? Are you up to date on fair housing, pets, service animals, marijuana laws, etc. 

The clearer you are on what you handle and what you dont, will save you problems in the end. 

Make sure your insurance and licensing is up to speed prior to taking on a client.

Best of luck!