So if you read my previous post regarding the terrible PM i had you must
know that i had my share of terrible PMs who know only to collect the
rent and their fees and nothing else.
So I was fed up with it.
I started to interview a few. I have one for my investments in Vegas so I was
basically looking for a PM for my Atlanta's SFHs,
I talked to a few. some sounded nice, some were vain enough to say that
700$ house is not in their range, but if I give him all my hpuses in Atlanta to manage
then he will take it. I heard that from a few of them.
but that wasn't what had really set me off.
so they take 10% of rent income, some of them were willing to negotiate to 8% if I was
to give them the other houses as well,
10% service if something breaks and he/she needs to go fix it, (10% or min service
fee of one visit is 35$)
one month rent for finding a new tenant (even if tenant only stayed for 2-3 months)
1/2 a month rent for renewing an existing lease with the same exact terms!
and more and more "pay for this, pay for that extras"
when I said "but If I pay for each time there is a service call, or every time there is a need
for changing a tenant and having them resign a lease... then what is the managing 10% fee for?!!!
they all answer with "this is for managing..."
"but, but.." i said "you just specified all the things you do and how much are they
going to cost me. so what is managing?"
and they all "remembered" - yes, for collecting the rent and distributing it to you
"so what you are basically saying is that i am paying the 10% fee every month to
have you collect (which is in most cases done by an automatic setup with an automatic
draft from the tenant's bank account) taking out your fee and making me wait another 5 days
to have you send what's left of the money?"
they all said: "you can put it this way if you want..."
but this is what it is.
they all hated to hear that. and why won't they? they got used to a standard of charging
a basic fee for nothing.
I hated it.
I found a really intelligent woman, who had experience in real estate, (as a broker)
and who had done these kind of things for renovation process and who had just finished
her property management class. I offered her this deal:
I give you not 8, not 10% of the rent, I give you 15%
but... it includes everything.
if all goes well, for a 900$ rent you get 1620$ a year (135$ a month) but if the house is
vacant, you loose that month, so the 15% is of 10,800 minus the months it was vacant.
there were more stipulations to this contract which basically makes her want to take care
of the house like it was her own.
If you are interested i be more than happy to show/ tell you.
I thought I should share this with you because it can really help set things right
making both sides with the same interest.
