Good management company for Hudson county?

Question

How much are normal fees?    What contract terms ?

What activities included,  rent collection , tenants complaints, finding new tenants , eviction?

John Errico · Answer

To echo what @Lloyd Spencer said: it's a difficult business to make high margins in particularly managing disparate properties (like, a single family home here, a multi-family home there). The property managers I use generally have a fair amount of autonomy when times are good (as in, nothing really going on), and I usually am more "on top" of them when times are bad (as in, tenants moving in/out, emergencies, non-payment of rent, etc.). With some properties, the manager is solely there to collect rent and deal with tenants, with other properties, I expect them to essentially "run" the property for me (pay utilities, take care of accounting, insurance, etc.).--depends on the property, and also you and their inclinations.

In addition to using properties managers elsewhere (south Jersey, and Connecticut), I run a small property management business in northern NJ mostly servicing my own properties, but also a handful of other clients. I'd be happy to lend my thoughts or otherwise if you have a property locally.

Lloyd Spencer · Answer

I pay 6% which is meant to include collecting rent, managing tenants and managing paperwork/financials.  Finding tenants or evictions are extra.  They are meant to manage accounting etc., but I do that myself because they aren't very good at that.  For example they let the insurance lapse for non-payment, which I discovered 6 months later (gulp)... In theory they should be the mailing address for anything relating to the property and they should present you with invoices for approval if you want to do it that way.  I don't feel comfortable giving someone else a checkbook, some people have them do everything.

Basically you are paying for project management.  They can meet contractors at the property, or find you 3 plumbers to quote on a project.  They will go on a Friday night to meet a plumber for an emergency, etc.

I interviewed 4 a year ago and ended up with someone who is ok but not what I would expect in a professional.  I sense the bar is pretty low in this field unfortunately.

If you find someone who truly represents your interests I think it is worth paying whatever they ask.  It's a low margin business where you only deal with complaints, and there's limited upside.

Good luck, and please post any progress.

Avisha K. · Answer

@Ethan Smith, are you still searching for a property manager? I have a really good one to recommend (good PMs are difficult to find, and I've been through a few). I'd be happy to send you a direct message with their info!

Jessica Zolotorofe · Answer

I'm a little bit late to the party, but I met a great handyman/property manager, so I figured I would throw his name out there. He's really helpful if you're out of state or just don't want to deal with the mess of having tenants and multiple houses and need boots on the ground. His name is David and he's with Ballan Improvement Group. Message me for contact info. Thanks!

Hideyuki Gojima · Answer

@Ethan Smith

here is some of property management companies' work.

Some owners negotiate and ask partial work and pay the less fee.

1. Work order management : When things are broken, your tenants contact the property manager and they will schedule the repair or any service to solve the problem.

2. Collect Rent :  Some collect rent by checks still but only rent payment is the trend now.3. Reporting / maintaining record : Property manager keeps the record of what happens at your property and report to you monthly usually. 4. Bookkeeping / Accounting : Some property managers do bookkeeping as well and send the financial information to your accountant at the end of year. 5. Leasing : When there is a vacancy, they contact real estate brokers and find the new tenant. They schedule cleaning before the new tenant moves in.

3. Reporting / maintaining record : Property manager keeps the record of what happens at your property and report to you monthly usually.

4. Bookkeeping / Accounting : Some property managers do bookkeeping as well and send the financial information to your accountant at the end of year.

5. Leasing : When there is a vacancy, they contact real estate brokers and find the new tenant. They schedule cleaning before the new tenant moves in.

Good luck!

Craig Bellot · Answer

If your long-term goal is to invest in more properties it is worth it to invest in a solid property manager.

Your time as an investor is infinitely better spent analyzing markets and deals. You want to move up the 80/20 leverage curve from technician to investor/entrepreneur.  In Bridgeport, CT the investment is about 10% of rents collected.  This frees you up from taking resident phone calls, coordinating maintenance, leasing vacancies, accounting P&L's, conducting inspections and making property payments to focus on higher leverage activities.

Peter Tverdov · Answer

Good thread. I have a management company in Central NJ, so this thread now has the entire state covered haha. I typically charge 8-10% of gross monthly rents with larger portfolios getting a slightly better deal. On the commercial side we do 3-4% of rents (not apartment buildings, but office, retail, free standing, etc). It's one flat fee and that includes everything a manager would need to do. We don't mark up on anything. Terms last one year, can cancel 30 days without penalty.

Mike Bonadies · Answer

Hi @Ethan Smith, finding a good PM can be difficult since its a very regionally fragmented business. I think @Lloyd Spencer hit it right on the head. There are different types of property managers out there so make sure you vet them carefully. Make sure its clear who owns what so when issues arise you know what your action items are.I am both a landlord and I have a property management company in South Jersey (think exit 5 and below on the NJ Turnpike). We are a "full" property management company. In other words we take care of everything except pay the mortgage. I can give a breakdown of what we typically charge so it gives you something to bud up against the companies up north.Vacancy Fill: Flat Rate of $700Management Fee: 10% of rent roll2 Bi-Annual Inspections Per Property: $50Municipal Certification Fee Per Property: $75Thats it.One thing to vet carefully is the full fee schedule. Some property management companies hook you in with a low rate, but charge out wazoo for every aspect. Fee to fully understand are:Lease RenewalAnnual AdministrationRepair/Maintenance PremiumAl-La-Cart InspectionsVacant Property Maintenance PremiumIf they don't state them outright make sure they cover those items when they are managing your property.If you have any questions or uncertainties about a company feel free to DM me and we can connect.

Alex Yi · Answer

Don't know any personally but following this thread!

Justin McElroy · Answer

Bermeo Properties out of Hoboken has good reviews. Never worked with them as I haven’t needed any help from management companies just yet. I saw their sign when walking by and did a little digging online and saw they received some good reviews. May be worth giving them a ring.

From what I’ve heard going rate is around 8% around here.

Good management company for Hudson county?

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