All Forum Posts by: Adam Rich

@Ed W. Here is a general breakdown:

5 zip codes have 1 unit

22 zip codes have 2-5 units

7 zip codes have 6-10 units

7 zip codes have 11-100 units

Below is RL Property Management's current monthly rents per square foot in various zip codes in and around Columbus, Ohio.  This data is for all the units we manage.  We have a varying number of units under management in each zip code.

Data is as of January 14, 2020. The average is $0.85 per square foot per month.

Sorted by Zip Code, the average monthly rent per square foot ($/sf/month) is as follows:

The same data sorted by the average monthly rent per square foot ($/sf/month) in each zip code:

Michelle,

What work is needed?  I'd focus your energy on preparing an excellent scope.  Make the scope clear, itemized and as detailed as possible.  Drill down on every detail.  

Once you've prepared this scope, you will find it a lot easier to choose what to do yourself and you will have a much easier time hiring out the rest as the vendors will know exactly what you want/expect.  This should result in better vendor bids as well.

Philip,

If you dig up great real estate investments (this being the key), and you can borrow the debt, you can find the capital you need (equity partners).  I'd recommend 2 steps:

1) Prepare some simple documents (clear and concise) that describe who you are and what your RE investment strategy is.  These docs should show how you would analyze a deal.  Capital partners will want to see something like this at a minimum (an example of a past deal is even better, but I realize you are starting out).

2) Go to any real estate related event you can find and start asking around if anyone knows someone who likes to be capital (equity) partner on deals.

Clyde,

Business owners seeking your type of space are going to be relatively small businesses. They will likely be doing some searching online themselves, possibly not even using their own broker.  Do you have a high quality craigslist ad up?  Excellent interior and exterior photos, floor plans, awesome lease term descriptions, maps.  I'd be happy to review your ad if you post the link.

If you stick with your broker, I would make sure you are getting a discount in exchange for the resume building and also ensure your bldg is listed on the most commonly used commercial listing sites for your area (paid and unpaid).

Commercial LESSOR side brokers can help in two main ways among several other minor ways: advertising to find a tenant and helping with lease negotiations/drafting. I would try finding a CCIM in your area: http://ccim-find.webauthor.com/

Jon, excellent summary of some common issues with managers of single family properties.

RL Property Management Group in Columbus, OH addresses your complaints in the following way:

Insufficient value provided. - We do not charge leasing fees, as it sets up the bad incentives you describe.  We want to be managing your single family property in 10, 20, 30+ years.  We desire the best residents for this reason.  Great residents benefit the owner and the manager in the long term.

Padding contractor charges. - We pass on contractor quotes as we receive them for owner review.  We do however charge a small markup on these quotes if we manage the completion of the job. This markup is outlined in our Property Management Agreement, and covers the cost of our time.

Poor service quality. - We only do property management. Our employees and owners do nothing else. We have seen the issues you describe (when agents do "part-time" management) in our area. Common response from residents renting from our company is "Wow, you actually take care of maintenance issues".

Managing single family properties has a whole host of challenges.  The solution to what many consider a  "million dollar question" is being worked out by the few good property management companies out there that you describe.

Adam Rich

RL Property Management Group