All Forum Posts by: Sharon R.

@John Thedford, thank you:) 

I did negotiate and some agreed to some of my requests and yes, one of them was a 2 months notice. but the 3 I talked to in Atlanta didn't agree to wave the 50% month fee for renewing an existing contract. that was what actually set me up to set up my own agreement. 

what I also couldn't stand (I am also looking to do the same in Vegas now) is to wait 10 days 

for distribution and then getting this complicated report which i have no idea what is written there... 

I am also away from my properties most of the time but i am almost 16 hours by my cell, 

so I can be reached easily and transfer monies very quickly when needed. 

 I must say these are good numbers. I was thinking of Florida a third market option... but maybe I should think again :) 

@Brandon Ingegneri, 

I can send you the agreement later on when I am in my office, 

but to make is short - 

15% out of all rental incomes, 50% from late fees that tenant pay 

no, you don't pay for repairs. but you decide on yearly Home warranty company 

which I pay for it, I also pay for regular house insurance obviously, 

and renovations before tenant is placed. but repairs that are not included in 

HW policy would be a cost that will be divided 75% i pay for it, 

15% is taken out from your fee. let's say there is something broken 

that HW doesn't cover for some reason (they cover most minor things) 

and let's say it's 100$, so you "loose" 15$ from your next fee. 

the idea is that it makes PM care about the house and cost of 

repairs so he/she makes sure I buy the right HW policy and does 

inspections regularly (like every 3 months or so) so he knows whats 

going on and if there is something to fix - it is in his/her interest 

to fix it in a competitive price. 

as far as tenants replacing, signing, changing - it is all included in 

the 15%, but if you get a good long term tenant than you only need

to worry about it once for many years to come... well, at least 

this is what people like me are looking for (long term tenants) .

feel free to ask anything about it. English isn't my first 

language so if something is misunderstood it is probably my fault... 

@Brandon Ingegneri, 

I must say that your terms sound much better than all PMs I talked to 

in metro Atlanta, so what I am getting from all you guys (other PMs here)

is that #Vegas and Atlanta (where I have properties) have the worse 

terms for owners. 

However, let me ask you in light of all you have just written, 

had I offered you my "Sharon 15%  agreement" (i am having fun w/that name...) 

would you try it? 

I don't have a property in Rhode Island so it is just hypothetically asking.. 

@Amber Gonion 
I can easily understand wha makes you say that. but you must know that while you 

gave this post maybe 5 min of reading it, i gave the idea of this kind of agreement a long while

to think and consider every detail of it. I wanted something that would be a fair game 

for both sides. 

I don't need anyone collecting monies or distributing it to me. 

I do need a manger to take care of the house, the convenience living standarts of my tenants 

and making it profitable as possible. 

if we go with the normal system you get paid one month rent (let's say 900) and then,

once you (as a PM) put a tenant in, and every month 90$, so if you didn't really pay 

attention  to what you were doing...(maybe you had a bad week or something...I don't know..) 

or wanted to get the quick cash cause your son needed a new PC that month ...

(again - this is just an example, I am not saying that you are not a professional) , 

and so you sign up the first "OK tenant" that comes along because it is a sure 900$ ,

 then it is very possible that after 6 months you need to take care of the tenants' 

damages to the house, which not only means at least 1-2 month of vacant house without 

rent but also possible damages which tenant left that are not covered entirely by their

deposit...

who pays for that? 

off course. the owner. 

Owner pays for repairs, owner looses the 2 months vacancies 

(lets say 900*2 = 1800$ + extra 500$ for damages above the deposit, and this is putting

it very mildly..i had it happened to me  ) 

what happens to the PM? he/she looses 180$ for the house not being 

rented... but wait, it gets "better "because now the owner needs to pay again 900$ 

to get a new tenant! 

so the bad situation - to translate it bluntly - is actually in favor of PM pockets. 

all he/she can say is "this things happen..." and I agree. but you can't tell me you 

don't see the conflicts of interests. 

So yes. if you are the most honest PM alive - i am sure non of 

this ever crossed your mind. 

In the agreement i came up with, let's call it "Sharon's agreement" or better "flat fee" 

for the sake of this conversation, 

the PM has all 100% interest to pick a good - solid - paying - long term tenant 

that will reduce his job to a minimum, so the 15% that is paid to the PM

is really for picking the right tenant, maintaining all in perfect order and by doing so,

it keeps both sides on the same team. 

yes, before you throw it in, I agree, things can go bad regardless. I agree.

but when they do once, you (as a PM) become more carful the next time - cause it is 

in your interest to do that. and not the other way around. 

I tell you what, 

try to offer this option to some of your potential clients on the phone, 

and see how many more you will sign up just by offering this option.  

My property manager started to offer it to all her new clients, 

she has signed 80% of the new coming calls. her conversion rate before was 20%- 30% 

I have no idea to know how accurate are these number but I think you can test it yourself. 

like I started the first post here - sometimes people are so used to a specific 

system they don't bother to stick their heads out to see if there is something better 

to at least try out. 

 I meant to say that this information kills your "libido" to do something, 

do i still need to change the word? 

@Brian Corbett

that's sound fair. I guess NC is different than Atlanta is that manner. 

Listen, I don't mind people making money and much of it, why not? 

that;s why I told my PM - i will pay more. 15% not 8 or 10% but we stay on the same team. 

i hate that people follow the herd when there is no sense and 

there is nothing but a big conflict of interests.  

@Lisa Wade

I had very little knowledge of what i was doing if to be honest. 

I just had to jump in. 

people scare you as much as they can. 

there is a castrating information everywhere 

don't do this, don't do that...

Gosh, I "cry" everyday for waiting so long to begin...

please add me so we can chat private further more

You know what? listening to all their terms ...

It felt to me like in that story that the king is naked but nobody dares to say 

anything to him... 

how does it make sense that your own property manager gets 10% of the cost 

of any repairs needed to be done? it actually encourages him/her to choose the most 

expensive vendor, or at very best - not the cheapest one. why would he? In the 

agreement I made I stated that I am buying a home warranty for each house (about 500$ a year) 

and since the houses are renovated then it is in the PM duty to decide whether 

the house is tenants ready. 

anything that happens after that that isn't covered by the Home warranty 

is paid by me but i do take 15% of that cost from PM fee since that maintains three goals - 

the PM needs to make sure the house is tenants ready, second - the PM will come 

visit and inspect the house to prevent tenants' negligence . 

Three - if a repair is needed - 

PM will make sure the prices will be cheap since he/she pays 15% of it. 

and that's another point - money goes into my account. I pay fees when i get the invoice. 

Times have changes. 

we are not in 1990, everyone has his bank account app on their smart phone, 

I can see who deposited money and SurePay any sum that i want. 

a tenant can transfer money, the PM doesn't need to go pick up cash. 

Hi Shiri @Shiri Manor Nisenbaum, 

I also own a house in Decatur, 

the houses are cheap but so is the rent, like 700-800$ 

there are other ways of getting a good tenant, like changing a broker 

to a one that actually moves things around and being open to sec8 tenant. 

PM me or leave me ur # and I will call.