Hello all! I’m an experienced Loan Officer, Realtor, and Investor! My wife and I currently own 5 single-family units in Detroit, MI that we self manage in C class neighborhoods. Also, my wife is an experienced property manager working in the commercial multi-family space for Monarch Investment and Management Group. Currently they are the nations 8th largest multi-family owner, having over 75,000 units.
As I began to navigate the market of investing I also started exploring the costs of property management as well as the role of most PM companies. Let’s just say I was underwhelmed with what I found. Excessive fees, that can sometimes make a great deal much less attractive along with sub-par service 75% of the time.
My question is this:
If there was a company that charged a flat fee for management, let’s say $89.99/mo, would you consider using them? Here’s an estimated fee structure:
$299 onboarding fee no matter how many units
20-50% of first months rent depending on units
$199 renewal fee
50/50 split on late fees
NO vacancy charges
$75 fee for contractor coordination. We manage getting bids, scheduling with tenant, etc. Work is billed directly through the contractor with no markup from us to the property owner.
I have the ability with my broker to start this project, and we’re considering having my wife leave her current position to get this off the ground.
Thoughts and opinions are greatly appreciated! As rents are appreciating above $1k in Detroit, and well over that in the Metro area, there seems to potentially be a need for this in the market.
