All Forum Posts by: Michael Tempel

I think 10% and a placement fee is extremely high.

We only manage apartment communities.  If we charged this and a placement fee on 300 units we would make a killing at the properties expense.   Sometimes have up to 40 turns a month, plus 10% on 300 units with a $830.00 average rent would be $24,900.00 a month, not counting the one month placement fee on up to 40 units which could be another $33,200.00 or a total of $58,100.00 for one months worth of work.  I am amazed that smaller investors owners don't realize how expensive these fee really are simply because they have fewer units. 

I am happy to work any owners or investors that are okay with this level of compensation however :-).  On larger properties 3% or around that amount is fairly common, but it is in one spot verses 300 units all over the place as the single family market is.  Still think many companies take owners to the cleaners with fees.....not even getting into the upcharge on maintenance etc.  

Which version of Yardi are you with?   Also, I like Yardi, but switched to Appfolio for the free ACH and 1.00 per unit pricing if that helps.  Yardi and Real Page are awesome, but very expensive.  With the number of units you should have more economies of scale, we are under 400 units currently, I do know it is a long implementation period for both if you need to import existing data.

I know this area.   Rochester is growing like crazy, but why live in a dying town 30 miles away?   Plus there are income and time restrictions.   I would build in a small town if I had a larger lot, it looks like they put themselves in a land division situation that doesn't make sense for the price of home expected to be built.   Plus, who wants to move to a dying town when you have so many better options nearby.    

It depends on a lot of factors as noted above.   I do try to get top quality machines, front loaders if possible to cut down on water usage and charge a higher rate.    I am at around 2.75 a load and have an option for a super cycle at .50 more.   You have to make sure there isn't a laundry mat next door, but usually I find they charge higher rates, but something to pay attention to.   

I got a past post removed for mentioning laundry leasing companies.    I would just check with your multi family associations.   If they are good companies you will find them there.   

2 to 4 max.  Have 6 properties and typically put in 2 machines for every 6 units, but do just fine with two machines on a 23 unit.   

I encourage a leased deal simply because you will get the best product and maintenance.   We 100% collect on our own and pay a fee for machines.   Every building I look at for sale at a discount owns and the machines look like it.   See it as advertising/revenue.   You will rent to great residents if your equipment is up to date or progressive from the competition.   

I am a broker, management company, investor that focuses on multifamily of 10 units or more.  We can handle everything from locating, full renovation and overall management of apartment communities in Minnesota.

I have a lot of contacts in your area.   Feel free to send me a message and I can connect you with the best fit for what your looking for.  

We may already know each other through association.    

We also have cameras etc.   The padlock will be cut fairly easily.   In our market they were using a jaws of life like tool that can tear through the entire side of the machine coin box.   

We have a few credit/cash stations, but these are thieves favorites to hit since it is like an atm.    Always have a camera and alarm attched to the machine.   

Another option I have used on some properties takes credit cards right on the machine.   It also lets residents track when machines are open or their laundry is done.    

Overall laundry is a great income source in multi family.   The newer machines also are easy to change rates charged and offer an alternative super cycle for a higher rate.    I like buildings that are not next to a laundry mat, but if you are, just price your laundry a little lower and you'll get the business, especially with nice machines.    

I am almost 100% credit vs coin.   The vending companies like it since break ins go to zero and overall it is the way everything is going.   

I used to have cash stations that took credit or cash, those got hit every 5 months camera or not.   Unless you get a license plate etc, cameras are not that great if you don't know the person.   Even still it is tuff, I witnessed camera footage on an past maintenance tech that stole 5,000 from a community.   He was in a hoody etc., was obvious if you knew him, but hard to prove.   

Last point, when you grow in size it is a pain in the butt to collect and deposit coins.   We had a 275 unit building that took about 6 hours to collect and deposit coins.   Went credit only, lost a little at first, but now make the same and spend 5 minutes to show laundry income.    

RUBS.