All Forum Posts by: Michael Tempel

We normally redo the kitchens, flooring and lighting so it makes a lot of the regular items less important.  

Think of major items that will cost the most money.

Tile in the bathrooms, windows (overall), appliances, doors (sometimes they are not hung or in bad condition), bathtubs (do they need replacement or major repairs), plumbing (overall), air conditioners (do they work or are they outdated)......

We also rate each unit 1-10 based on all factors and list tenant issues if during due diligence so we know if we should consider non-renewing or addressing at the time of acquisition.  We normally do a unit by unit inspection 30 days or earlier before closing.

This sounds like it could be an underground leak.  I had the unfortunate issue myself where the main line was leaking after the meter (if it leaks prior to the meter the city takes the loss).   Use a leak detection service and unfortunately be ready to have a new main line installed on your side of the property (this is at least the case in the city I had it happen). 

Never a fun experience.   Another tell tail sign is if you see a lot of sediment coming from any of the faucets.  Usually a sign the line has a bad leak.

Costar and LoopNet (actually both are the same company now).   You can find off market opportunities by having detailed information on any property through Costar.  It is expensive, but the best I have found over the years. 

Basically you can contact the owner directly and see if there is any interest, but also have detailed access to property info, public record info and past comps when available.

I used Yardi for many years.  We actually were one of their first clients when they only had the dos professional version.   Most larger PM companies will use Yardi Voyager, Real Page or some of the other Elite Systems.   Without working with  company it is challenging to learn Yardi, since you don't have the day to day use in real life settings. 

We actually switched from Yardi to Appfolio due to price and overall a much easier system that all our employees can use (again, no expensive per user charges).   I think in most cases we haven't hired anyone based on their system experience unless it is a position that focuses on accounting.  For leasing and assistant manager roles I wouldn't worry about not knowing Yardi.  We focus on customer service, sales and overall personality when hiring for leasing and assistant manager positions and haven't really made a decision based on PM software experience.

I completely agree with you David.  I also find it a bit much to charge one months rent and mark ups on everything else.  We normally manage larger properties so our management fees are well below 8-10%.  

These responses make sense, I have very few connections that want regular management so every project I have taken on usually involves a full renovation/repositioning.   More work on our end, but I think that is what gives our company the most value.  We also keep everything as simple as possible.

I am a property management company based in Minnesota and simply wanted to learn what owners really want in a management company.   We are simply trying to be the best that we can be and to do so try to take a step back and listen to suggestions.   This isn't meant to be a solicitation, but rather an open discussion of what owners expect, like or don't like in a management company.

We basically manage at a set percentage of gross income, but do have to run payroll and other property expenses through the property.  This is always hard to explain to owners, but obviously we would be working at a negative return if we covered all of this in our percentage.   Normally we manage properties that are 20 plus units if that helps.   As an owner how would you like this illustrated in a contract or simple conversation?

To start a discussion, what do you love about your management company?  what do you hate?  AND what do you wish or think they should do?

I just had to change a sign ordinance in one of our cities we manage in to put up a monument sign with a digital display.  I would start there, your city/county will likely have exact rules on what can be put up, size, length of time etc.

I have found Joel's example to be true with the properties I manage.  The smallest is 23 units and overall is 320 units, but I aim for about 55% expenses.  I also agree with Aaron, every property is different so you should approach it that way.  We use a model to plug all expenses in rather than guess.

10% is a very high management fee for larger properties, I would be thrilled to manage for you!  In Minnesota it is usually in the 5% range and sometimes 3.8% for larger properties.  Of course this is for 45 units plus...with the 3.8% typical when you have over 350 or more units....still a lot of money either way :-).   On smaller assets I see a lot of door fees and first month rent fees vs. percentages, so I could imagine they exceed or meet 10% in many cases.

Anything under 4 units is normally listed on MLS since it is residential vs. commercial. Loopnet of course is one of the main places to look either way as suggested.

do you use Costar or Loopnet?   Usaully has an option search box for this.   I agree they are a pain to find since they get thrown into so many "other" categories at times.