Choosing a Property Manager and Property Management Fees

[Nir]

Hi Everyone,

Should property management fees be reduced if landlord is (offering to be) responsible for rent collection?

Has any of you worked with a property management company this way where you are still collecting rents from the tenants and therefore pay less, say 5% instead of 8% property mgmt. fees?

Also, should I ask the property management company to provide 3 references? is it common or will it insult them if they are used to accepting clients through referrals or something - people who might not ask for references in most cases?

THANKS,
Neil

 

[HeatherBrandt]

QUOTE (investmart @ Aug 27 2008, 05:28 PM) Should property management fees be reduced if landlord is (offering to be) responsible for rent collection?

Has any of you worked with a property management company this way where you are still collecting rents from the tenants and therefore pay less, say 5% instead of 8% property mgmt. fees?


I`d look at this question from a property manager`s point of view. If the owner is collecting the rent, there is a greater chance of mess ups and they don`t have the money on hand to pay expenses (ie-their fee, repair and maintenance). There`s also the chance there will be an interaction between the tenant and owner that puts the manager in a bad spot (but the owner said...).

My vote is that the manager would charge you more for you to collect the rents! Like the sign at the mechanic`s: $100/hr, if owner helps it`s $150/hr.

I`d be interested to know if anyone has negotiated this kind of deal with a (licensed) property manager.

Heather

 

[housingrental]

Yes I have
Main issue is owner less satisified and messing up on records

 

[brentdavies]

If you are collecting rent, are you also chasing arrears, maintence, etc. Why not just do it yourself.

As a former property manager, I would not get into this arrangement for a number of reasons.

The biggest reason not to, is that the tenant will play the owner against the property manager on a number of issues.

Why are you hiring a manager? or do you only want a maintance man?

 

[Nir]

Thanks everyone for the quick responses, really Great input!

EXACTLY Brentdavis! I have the feeling I only need a maintenance man(!?) that is the source of my dilemma.

With long term tenants I just don`t expect much, if any, issues with rent and if once a year i have to deal with it no problem.

However, I strongly prefer not to deal with maintenance issues and the properties are far from where I live in Toronto.

so..what do most investors do in this case / what do you mean by "maintenance man"? a handyman or general contractor who can also coordinate the work and bring the right people for the job depending on the issue?

Regards,
Neil