Mom and Pop Property Manager

[Michael Craig]

Hey BP,

I am very close to closing on a duplex which is about 3 blocks from my 3 family home (my current residence). I will be moving into the duplex once I close and I will rent out the unit I currently live in - leaving 0 vacancies at the 3 family home. 

Because of the additional management responsibility that comes with the duplex (one unit already occupied) and the repairs that need to be made, I have decided to utilize a property manger for the 3 family. The property manager I have in mind is a current resident at the 3 family who I have gotten to know well over the last year. He is very responsible, helpful and already takes good care of the house. 

As a manager I would like him to take any calls that may come from other tenants, address/repair items that are within his capabilities (notify me if a call requires a contractor or if a repair is outside his capabilities), remove snow (winter) and mow the lawn (summer) - fuel, salt, mower, snow blower, etc provided by me.

What recommendations do you have for formalizing an agreement like this? How often would you recommend I communicate with him?  What percentage of his rent ($1,375/month) is good to offer to take on this position - keep in mind he is not a licensed professional? 

Thank you for your time.

[Dennis M.]

I would offer him nothing because I would never do that . This model is usually considered a poor business practice for managing. Why can’t you manage the triplex yourself ? seems you’d be throwing money away .i mean is the place really that hands on that you can’t manage it yourself ? Your going to be leaving a bunch of money in the table if you pay people to do everything