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Updated almost 3 years ago,
Brother Helping Manage a Property
My wife and I recently bought a house in Rochester, MN and we plan on renting it out to section 8 applicants. We live in Washington so it would be difficult to cover all aspects of management from here without some boots on the ground. My brother lives near Rochester and we have talked and are considering getting him involved. Primarily, we would like to list him as the property manager because Rochester, MN rental code dictates that rental unit property managers live in the same county as Rochester, MN or an adjacent one. One of the reasons we would prefer not to hire a management company(other than the price) is we want to do our strict screening process which property management companies wouldn't do( or we don't think they would).
So far, My wife and I are planning on doing a bulk of the management remotely, including screening potential tenants. The part that seems difficult is meeting applicants and doing the in-person screening part, and this is what we would like my brother to do. My brother would also more than likely be helping with tenant needs once in a while.
The part we are struggling with is coming up with a fair and good system to make it worth it for my brother. Does anyone have advice on how we could structure something fair for everyone? We are originally thinking of just a large one-time payment for the in-person applicant screening and other one-time payments for as-needed calls. This is all just a plan so I am not sure about potential holes in this plan and what could be a negative of all of this rather than hiring a professional property management company.