All Forum Posts by: Nathan Faselt

Hello BiggerPockets community!

I wanted to start a discussion on employee benefits and compensation. As a real estate investor and property manager, I find that having a great team is essential to the success of any operation. However, finding and retaining quality staff is not always easy.

One way to attract and retain good employees is to offer great benefits. I'm curious to hear from other investors and property managers on this forum about what types of benefits and perks they offer their staff, and what they've found to be most effective in keeping them happy and motivated.

I want the big basics as well as the small fun stuff with low cost and high perceived value.

Some examples of benefits that could be offered include:

• Golden handcuffs / parachute agreements
• Vacation days
• Holidays
• Bonuses
• Remote work options
• 401K plans
• Massage chairs
• Free lunches
• Free stays at the owner's STR vacation home in Bahamas ?

I'm also interested in hearing about housing benefits, particularly in terms of how much of the employee's housing costs are covered by the company, and whether or not this is included in their reported compensation.

If you're comfortable sharing, I would love to hear about the types of salaries you offer your employees, as well as any other compensation-related insights.

I'm excited to hear about what benefits have worked for you and your teams or where you work, and to learn from the collective wisdom of the BiggerPockets community!

Thank you for raising this question. In my opinion, if the landlord is in violation of the lease agreement. However, it's important to carefully review the lease agreement to see if there are any clauses that allow for making improvements or performing maintenance that was not previously agreed upon in the lease. To avoid any confusion or issues in the future, it would be best for the landlord to include specific language in the lease agreement regarding their right to make improvements or perform maintenance during the lease term or renewal. As for Terrells point above that would be interesting to know if the lot was divide off to my understanding most ADU's are not subdivided off but if that was the case it was, is that legal? as you rented the whole property.

@Courtney Nguyen

So far, there is a $0 setup fee. However, my understanding is that there is a minimum balance requirement of $5,000 or something. If the minimum balance is not met, a higher fee may be charged. As for broker fees, I am not certain about the costs associated with investing in their choices. However, if you choose to self-direct your investments, i believe there is no fee.

still studying 

Hi there,

First of all, it's great to see that you're taking a proactive approach to finding the right CPA for your real estate business. It's always better to be proactive and ensure that your finances are being taken care of properly, rather than realizing too late that something has been overlooked. No one will fight as hard for your business as you do. I hate to say that because you pay experts, and it not scaleable to rely on your own knowlage, and nor should you fully rely on you own wit as that will surly slow you down, but its sad and true.  Im sure your aware being in a partnership and with this question being posed. 

As for your questions, here are my thoughts:

1. When it comes to finding a CPA, I believe that it's important to find someone who specializes in real estate, rather than just going with whoever is currently managing your highest income stream. Real estate can be a complex business, and having a CPA who understands the ins and outs of it can make a big difference in your bottom line. That being said, it's important to ensure that your other businesses are also being taken care of properly, so you may want to consider finding a CPA who has experience in both real estate and your service business.
2. While a financial planner can certainly be beneficial, I think it's important to ensure that your CPA is already providing you with some level of financial planning advice. A good CPA should be able to advise you on the best tax strategies for your business, as well as help you make informed decisions about investments and other financial matters.

In terms of finding the right CPA, I would recommend starting with your network. Talk to other real estate investors and business owners in your area and see if they have any recommendations. It's also a good idea to look for a CPA who owns a few units themselves, as they will have a better understanding of the challenges and opportunities in the real estate market.

Overall, I think you're doing the right thing by being proactive and seeking out the right advice for your business. Good luck in your search for the right CPA!

I recently set up a self-directed HSA account with UMB, which allows for self-directed accounts. As far as I know, there are no fees for contributions, as my dad has been using them for a while without any issues. However, he hasn't been taking full advantage of the tool.

Personally, I love the HSA strategy and its many advantages, such as tax-free contributions and the ability to pay for authorized medical bills with a credit card and earn points or cashback. It's important to keep good records of every receipt and keep your money working in the HSA. When you reach retirement age, you can get reimbursed for your medical bills and take out the money that has grown tax-free.

I've also watched Mark Kohler's videos on Youtube, and I think he's great. He always comes up with creative strategies, and I plan to learn more from him and in general HSA strategies in the near future."

I know word of mouth or referrals are the best for building trust.  Non the less I would be happy to help at least talk about what problems you are having see if i can help in anyway.  I see Kalona tagged in your profile,  I am born an raised in the Kalona area went to mid prairie and we actually currently mange there as well you may know the owner if you want a referral.  We are a family run management company "Pace".  We pride our self as a mom and pop feel that provided the owners mindset with the knowledge, resources and processes of large corporation to handle and understand your investment properties.     I DM'ed  you if you would like to talk more. 

I like where your thoughts on this are I am also unfamiliar with the inflation act money and interesting thought on HUD financing.

I would also check with installers or venders about financing for the update some may offer good rates. 

@Griffin Doninger how did this turn out for you? 

@Darson Grantham& @Chase Keller. Hey I was wondering is this recommendation would be the same for a lender that knows owner occupied "house hacking" FHA 2- 4 loans well? Compared to traditional commercial loans? Of has there been any update to the recommendations?

Hi Marcela,

Congratulations on expanding your rental business and considering the possibility of hiring property managers.

As someone who works in and owns a property management company and owner investment properties, I can tell you that it's great that you're considering the best ways to compensate your future property managers and insure your assists are taken care of and help you get the best return on them. I like the thinking out side the box, “entrepreneurial”, I love this and its a good thought exercise to consider.

If you're considering offering equity or other non-traditional forms of compensation cashflow, stock/ shares , "Bartering, Perhaps you own a service that I need/ want, Carwash coffee shop, restaurant, Do you have a vacation home the owner can stay at for a week free?" Ect.

You might want to consider "sweat equity,". If you're considering sweat equity, it's important to determine how to value that equity. You may want to work with an accountant or financial planner to help you both calculate the appropriate amount of equity to offer. Additionally, you'll need to consider how to structure the partnership agreement.

Personally I would consider doing even though it is a lot of work but I would likely stand to be getting paid much more if I did this because I am shouldering more risk with you. And in most cases your properties under traditional arrangement would be just fine. 

it's important to note that these types of approaches create true partnership, which comes with its own set of considerations and potential challenges that partnerships always do.

It's also worth noting that property management agreements are essentially partnerships, and should be approached with that mindset. When you're evaluating candidates for property management positions, you should be looking for people who have a strong track record of success and are committed to building a long-term partnership with you "Owner mindset /eyes". As most have shared on the post already it is pretty common to go down that % of income path.

Another way to ensure reliable management of your properties is to establish clear and detailed management agreements with your property managers. These agreements should outline the expectations, responsibilities, and compensation structure for the property managers, as well as any performance metrics or targets that they need to meet. By doing so, you can establish a strong working relationship and ensure that everyone is on the same page when it comes to managing your properties.