Property management for parents

[Meghan Dreher]

My in-laws are looking to buy a short term rental property and would like my husband and I to property manage for them. We have no experience with working with other property management companies and are wondering what a fair % is to ask for. I’ve seen 6%-20% so that’s a large range - there is no other option for a property manager in our area as we’re in rural Western PA and those companies just don’t exist here. Also any list of “property management” do’s and don’ts to follow? Thanks in advance!

[Nathan Gesner]

Originally posted by @Meghan Dreher:

My in-laws are looking to buy a short term rental property and would like my husband and I to property manage for them. We have no experience with working with other property management companies and are wondering what a fair % is to ask for. I’ve seen 6%-20% so that’s a large range - there is no other option for a property manager in our area as we’re in rural Western PA and those companies just don’t exist here. Also any list of “property management” do’s and don’ts to follow? Thanks in advance!

Meghan, you're literally asking for an entire book worth of material and I'm not aware of any book that teaches you how to be a property manager. All I can tell you is that you should really know the law (federal, state, and local) and then build experience just like a Landlord would. When it's a job, you should spend time educating yourself constantly. I've been a property manager for 12 years and have 400 rentals, but I am still reading and networking all the time, trying to keep my skills sharp and stay ahead of the next crazy government regulation or nonsensical law or tenant trend.

My favorite source to recommend is "Every Landlord's Legal Guide" by NOLO. It not only includes a ton of practical advice about most aspects of managing rentals, but it tells you exactly what your state laws are and where to find them for yourself. I recommend you read this book, download copies of your state statutes to educate yourself, and then start building a "book" of policies, forms, form letters, and other resources just like you would any business.

You're only managing one rental, so don't go overboard. Make a list of all the things a Landlord or Property Manager may do, then start knocking them out by looking at the most important first: how to market, how to screen, getting a solid contract. Once the tenants in place, you have to worry about: late rent, non-payment of rent, eviction, lease violations like extra people or an unauthorized animal, tenant wants to break the lease, tenant abandons the property, tenant wants to renew the lease for another year, tenant wants to convert to a month-to-month lease, etc.

It's an on-going process. Good luck!