All Forum Posts by: Amol Kulkarni

@David S. The $2000.00 is RWN commission. In a new construction the broker doesn’t have a way to cut them into the deal so that is how it is paid. It has been over two months and my home is still not rented. I actually visited the area and it seems like there is growth happening there, but the quality of the few applicants I have gotten so far, have had low credit scores and had several large debts to previous management companies. I think ultimately the investment will be ok and it will rent. Bottom line, I think if you are very busy and don’t want to deal with finding your own people, it is an option. Since I am a seasoned investor I will likely not go this route again.

If I get tired of managing my own properties, I'll hire a w-2 manager that reports directly to me-- not a property management company. I'll do this because there are (usually) financial incentives for unethical behavior by property management company employees to create churn (and additional placement fees) by failing to work with tenants having temporary problems and by failing to promptly take care of maintenance issues they cause unnecessary turnover, by nickel-and-diming tenants for late, lost-key fees, etc., and "damages" to increase their own performance incentives, by charging top-dollar for mediocre workmanship and pocketing the difference, and by steering tenants to their own or their most profitable apartments. By failing to make filing the units a priority and inadequate marketing, advertising and/or preparation.

I look at apartments every day, and the VAST majority of the time, "professionally managed" properties are in the worst shape.