All Forum Posts by: Bob Collett

Matthew

Make sure you ask the PM that you talk with for their license number. Ask what services does you PM provide. Lots of unlicensed PMs running around town. Ask if they file rental applications, testify at property tax complaints, shop your insurance, etc. Let me know what zip codes you are looking at, and I will be happy to give you an idea of what to expect in the neighborhood.

Good luck, and welcome in advance to Cleveland.

Don't come if you are sick. We will see you next month. Reach out to any of us if you have questions.

Enjoyed last month's meeting. I am looking forward to seeing everyone again this week.

Bob Collett

Welcome and good luck

Dawn

Thanks for the great info... that seems a bit rich. I am surprised that the deal did not go through.

Bob

Mike. Thanks for the insights. Good stuff.

Joe

Thanks for the input. I guess if I used your formula, they might have to pay me to take it. Lol.

Patrick

Thank you for your suggestion. Yes, I recognize that I can pick up PM clients from my competitors. As a matter of fact, I already get much of my property management business that way. Many Property Managers here in the Cleveland area just collect the PM fees and do little else.  That said, the transition is a challenge when we pick up a client from a PM who is getting the boot, because I have to spend so much time cleaning up their mess.

And yes, I intend to overhaul everything. When I do, my new customers and tenants alike love it. Tenants know when they have a bad property manager. It takes owners a bit longer to figure it out.

I have bought businesses before, so I get the  due diligence stuff. In some cases, an otherwise good PM might want to off-load just part of their book of business because they are smart enough to see the advantage of focusing their efforts in a smaller geographical area.

I wanted to use a gross multiplier because I just want the book of business, not the overhead; and certainly not the liabilities where are likely to be huge. Sure, I would be happy to pick up a good employee in the process, but that is not necessarily have to be part of the deal... I just do not want to pay more than I need to.

I am a property manager in Cleveland and my business is thriving. I am in the process of buying another property management company in the Cleveland area to grow my PM business faster. I have the systems in place that I can take a low margin business and make it more profitable.  So my question is what should I pay for a block of business? Looking at it the other way, what would a property manager sell their block of business for?

I have heard that a few months management fees is the going rate. When I get referrals from realtors in northeastern Ohio, I pay them three months worth of property management fees. Is this too much or too little if I am buying a book of business from a property manager all at one time?

Since doing property management in Ohio without a license is illegal, I'm guessing that there are some who might want to get out while they can. Would you pay a different price for PM clients coming over from an unlicensed property manager?

Any advice would be appreciated, especially if you are in the property management business.  

Welcome John

I am a Westside but also manage properties in Maple Hts, Euclid, South Euclid, Cleveland Hts., etc. Let me know if I can answer any questions.

Good luck.