All Forum Posts by: Jason Weber

Hi Cody,

She manages 2 of my 12 plexes, my 24 plex, and a duplex. She's my employee under my property management company.

right now with her hourly I pay her around 1300/mo on average. She does a good job, but I'm doing some of the leg work myself. I was thinking maybe 4% plus bonuses on tenant placement?

Looking for ideal ways to pay my PM.  right now her contract pays her $22/hr for any communications, touring, paperwork, general administrative duties. Then I pay her $35 for any manual labor like cleaning, leaf/yard clean up, painting, any easy household repairs that she is able to do.  She doesn't like keeping track of her hours it's too much of a burden for her.  

I don't want to just pay her 5-8% of rental income as I feel like there are some months where she really won't need to work much and I don't want to overpay.  

What are some ways you compensate your PM?

I do think bonusing her on getting and or maintaining 95% occupancy is a good incentive.

I agree. I’ll pursue that option.

It’s a gross lease not a triple net. I guess my concern was he’s the one that’s been running it down for 15 years, I buy the place and 4 months into ownership it’s now a big deal to replace it. He’s 2186 sq ft so it would be quite expensive at $3-4/ sq ft. I wouldn’t be getting anything for the return on this investment except for a content tenant. Or I could really fix up the place and in turn rent it out at a higher dollar : sq ft amount.

I recently purchased a multi tenant business office building. One tenant who has been there for 15 years emailed me stating that his carpets are worn down, always look dirty, and have some areas of balding. He wants me to replace his carpets in his office.  I'm thinking the the he and his staff have been tearing up the carpets so I shouldn't just replace them for nothing in return right?  It's essentially a leasehold improvement which would make the unit a bit more desirable and valuable.  So, I responded that he could replace his own carpet but I would have to approve of the contractor and the material used, no linoleum.   Or, I would contract it out and pay for it out of my expense but in return I would need to raise monthly rent and possible secure a lease contract from him for a longer period of time.  What are your thoughts on how to handle this tenant?

Thanks for all responses.

Jason