Aligning incentives: Property Managers

[Isaac Wall]

Hey all

Has anyone successfully moved away from (or at least supplemented) the standard % fee for property managers in favor of bonuses and incentives that align the interests of the landlord and property managers? For example, have you ever incorporated bonuses or incentives for KPIs like low turnover, low maintenance (eg. Fix vs replace something) and tenant advocacy/satisfaction (eg. run some kind of tenant satisfaction survey and give them a bonus for improvement or meeting a certain target)?

[Jordan Sand]

@Isaac Wall - Yeah ... incentives are hard to track from your example like replace vs. repair. But I make sure that I have the following in place from contracts: (1) I get the late fees (2) no upcharged on repairs, (3) i get to see the contractors invoice, (4) i get access to all data. I'm not sure about % of monthly rent over flat rate. My $4k per month rental needs about the same amount of management as my $2k. You can change managers so make sure to track the metrics important to you to make sure they are performing although devil is in details.