Advice on property managers, and their costs...

[staneja]

I`m interested in purchasing a multi-unit residential property and am wondering if I can get some advice from the many experienced folks in this forum. I want to engage a property manager and
- Want to get an idea of how much it costs? I realize the actual costs will depend on the property, location, services etc, but I just want to get a general idea of the costs. Is it normally a %age of the rent? Or is it a fixed fee per unit per year?
- What is the minimum size of the purchase to make this worthwhile for a property manager to consider taking it on? ~10 units? More?
- Can anyone recommend a reliable property manager in London-Kitchener-Waterloo area?

Thanks

 

[Thomas Beyer]

QUOTE (staneja @ Aug 11 2008, 08:18 PM) I`m interested in purchasing a multi-unit residential property and am wondering if I can get some advice from the many experienced folks in this forum. I want to engage a property manager and
- Want to get an idea of how much it costs? I realize the actual costs will depend on the property, location, services etc, but I just want to get a general idea of the costs. Is it normally a %age of the rent? Or is it a fixed fee per unit per year?
- What is the minimum size of the purchase to make this worthwhile for a property manager to consider taking it on? ~10 units? More?
- Can anyone recommend a reliable property manager in London-Kitchener-Waterloo area?

Thanks
3 to 4% for larger properties in urban areas
4-6% for medium sized (say 20 suiter)
5-7% for smaller towns

% is of NET RENT COLLECTED (incl. all rent actually collected that month + laundry, coke machine, late fees ..) .. sometimes a minimum fee per month if high vacancies to start with ..

plus negotiable bonus (say when they achieve a certain rent target or certain vacancies)

PLUS onsite manager of $30 - $40/unit/month or appropriate reduction in rent

minimum: depends on company .. ask around .. some do nothing below 60 units, some nothing below 20 ..

 

[Shinto]

I just talked to a coompany not too long ago. I was looking at cost to manage a duplex. It was 5% of gross annual rent and 1 months rent to screen and do all the leasing. If the tenant left within a year, they would not charge to screen and replace, that would be built into the 5%. If you wanted construstion, building help, it would be $30/hr to access their trades people.


Hope this helps

 

[Haimr]

I start working with PM, it is costly !!

Before I start working with PM, my properties were strong cash flow after switching to PM we closing even.
PM is like the king of this game, you need to meet with his standard, rent collection depend on him and any other change on the property need to be coordinate with him.
Regarding to cost, on top of management fee consider other activity which PM will charge you include rent apartment charge.
Don`t understand me wrong PM is great, but take in account that it is costly.

If you can consider divide the work to collection and renovation and you do the management, it will be much more headache but lees expensive



Regards,
Haim Rabinoviz

 

[Thomas Beyer]

QUOTE (Haimr @ Aug 12 2008, 08:52 AM) I start working with PM, it is costly !!

Before I start working with PM, my properties were strong cash flow after switching to PM we closing even.
PM is like the king of this game, you need to meet with his standard, rent collection depend on him and any other change on the property need to be coordinate with him.
Regarding to cost, on top of management fee consider other activity which PM will charge you include rent apartment charge.
Don`t understand me wrong PM is great, but take in account that it is costly.

If you can consider divide the work to collection and renovation and you do the management, it will be much more headache but lees expensive



Regards,
Haim Rabinoviz
time is money .. and time coupled with expertise is more money !

assess if your own time is better spent managing EXISTING properties .. or better finding NEW JV partners and NEW deals for MORE properties ..

Usually the latter is where you should spend the time to grow your business (i.e. manage less, find more ..) !!

 

[Haimr]

QUOTE (thomasbeyer2000 @ Aug 12 2008, 10:04 AM) time is money .. and time coupled with expertise is more money !

assess if your own time is better spent managing EXISTING properties .. or better finding NEW JV partners and NEW deals for MORE properties ..

Usually the latter is where you should spend the time to grow your business (i.e. manage less, find more ..) !!


Yes Agree.

But I like to point the other side of using PM, BTW Thomas in one of your article you indicate the cost of using PM, sometimes you need to experience to understand the real thing behind the word.
From the other side I would like to point that PM add additional profession aspect on your property, which mostly help to appreciate your property.


Regards,
Haim Rabinoviz