Taking over a Mom/Pop Property Management Company

[James Morgan]

Hey Everyone! 
First post. I'm super new to the real estate world so please forgive my ignorance. 

So I just started working for my parent's property management firm and things seem to be done super mom and pop style aka inefficiently. I would love to utilize this forum platform to get some pointers on how to boost the company to a great and efficient management firm. 

A little about the firm. We are based in the heart of Los Angeles, CA and manage about 300 units. My parents' really care about all the buildings they manage and their clients and tenants LOVE them (not just saying that). I'm convinced they aren't charging enough/doing things the best way possible. Would love to hear your answers to the following questions... 

1) We use Propertyware as our software. It seems to be inefficient and dated... is it worth making the switch to another software? Does anyone feel Propertyware does a good job for them?

2) We currently have one bookkeeper and one admin assistant. The majority of the other work is done by my dad and mom. Does it make sense of having this many employees for 300 units? 

3) We charge between 4-5% of the buildings monthly income as our monthly management fee. Does 4-5% make sense or should we charge more? 

4) We currently don't charge a leasing fee for filling a vacancy... Should we be charging this? 

Best, 

James

[Kyle Mccaw]

I recommend you work in the business for a good while before making any changes. There is a reason your parents do/charge things the way they do. Propertyware is good. My office prefers Appfolio, other folks prefer Buildium, etc. There is no wrong answer. But changing software is a BIG deal. Do not change without being super prepared. Get to know other managers. Go to conferences. Take property management classes from the different associations.

2) We currently have one bookkeeper and one admin assistant. The majority of the other work is done by my dad and mom. Does it make sense of having this many employees for 300 units? ----This seems normal.

3) We charge between 4-5% of the buildings monthly income as our monthly management fee. Does 4-5% make sense or should we charge more? ----you need to survey the market to answer this.

4) We currently don't charge a leasing fee for filling a vacancy... Should we be charging this? ----what does the competition do? Most firms charge. So most likely the answer is yes.