Property management

[muskokalandlord]

HI looking to find out some information on Property managers What is the going price and how do you come up with the figures what credentials do they need and what do they do completly.

 

[housingrental]

Check out your local property management association for references
Phone a few - they`ll be able to give you more accurate quotes
Pricing will vary from area to area and property type and portfolio size and condition of property and services rendered

As general examples budget:
7-15% - Single family home
5-12% - Multi-unit building
3-6% - 15+ unit building


What they do as act on you behalf as a landlord - so depending on the firm, services you order, etc.. - you no longer are (REQUIRED, BUT STILL PRUDENT TO HAVE SOME OVERSIGHT PERIODICALLY) to have any involvement with the property

You might also choose to only hire a property manager in a more limited role - for example to rent your property only while you continue to self manage - for a reduced fee

 

[muskokalandlord]

Thanks I`m thinking of starting a Property Management buinesse there are not many around how would I begin the process there is a Fractional ownership resort nearby that wants some quots on 15 properties how would someone go about quoting that

 

[housingrental]

Check out the property first
Find out what the specifics of the job would be - Would fractional ownership means tons of turnover and your renting on short term for many individual owners during time periods when they wouldn`t be using the property? If so ensure you receive fees based on job tasks (ie walk through on start, walk through on leave, co-ordinating trades for cleaning / repair, per rental or per rental viewing, etc..)

 

[muskokalandlord]

I got an email of the things thatr need to be done by me do I price hourly or bid a total per job what is the most common way to bid on the job

 

[bizaro86]

QUOTE (muskokalandlord @ Dec 6 2010, 10:39 AM) I got an email of the things thatr need to be done by me do I price hourly or bid a total per job what is the most common way to bid on the job

I would only (hypothetically) be willing to bid an all-in per month price on things that recur at a predictable interval. For example, sending a statement of accounts whomever hired you, paying the utilities/taxes, etc.

If there are walkthroughs, cleaning (if you`d be doing yourself), showings, etc, I would bid on those at a flat price per instance/hour. IE XX$ on every walkthrough or whatever.

Fractionals are probably a bit of a different situation than residential rentals, because they`re probably more/different types of work. If you have to get keys to someone new every 4 weeks, that`s a lot of extra work compared to new arrivals every year or two in a residential setting.

Michael

 

[Hamiltonriver]

Hi Adam,

What do you mean by "no longer required to have any involvement with the property"? I am in a similar situation you described now as I know nothing about my tenants. I don't have their application, or credit check, or reference check, or insurance confirmation. All I got was a copy of the lease. I feel very uneasy because the tenant already paid his rent late once and my property manager did not even inform me. Am I entitled to know everything about my tenant even if the property manager is managing on my behalf?

 

[RussellWestcott]

[quote user=Hamiltonriver]Hi Adam,

What do you mean by "no longer required to have any involvement with the property"? I am in a similar situation you described now as I know nothing about my tenants. I don't have their application, or credit check, or reference check, or insurance confirmation. All I got was a copy of the lease. I feel very uneasy because the tenant already paid his rent late once and my property manager did not even inform me. Am I entitled to know everything about my tenant even if the property manager is managing on my behalf?




As the owner and CEO of your business... remember it is your name on the hundred thousand dollar+ asset.... You cannot abdicate your responsibility. Your property, your client.... your management company is an 'employee' for your business. You need to know your customers, I'm not saying being best friends, but you should be aware of the decisions you manager has made on your behalf for your property.



In this game of Real Estate, our BIGGEST asset is our tenants, they are the ones paying us. The property we are only 'renting' from the bank until we pay it off. Know your assets, treat them well, and they will make you wealthy in due time

 

[bizaro86]

[quote user=RussellWestcott]You cannot advocate your responsibility.


I couldn't agree more with this post. Your property = your responsibility.



But I think you probably meant to use the word "abdicate" in this sentence. In real estate, you can never abdicate your responsibility, since nobody will be your advocate and do your work for you.



Regards,



Michael

 

[RussellWestcott]

Michael you are correct.. that is the proper word >> abdicate. Will edit the post



Grammar not my strong suit, I'm just a simple 'hayseed' from Saskatchewan




Thanks for your contributions to the forum, you provide valuable insights to the community

 

[bizaro86]

[quote user=RussellWestcott]Grammar not my strong suit, I'm just a simple 'hayseed' from Saskatchewan



Thanks for your contributions to the forum, you provide valuable insights to the community


No offense intended Russell, what you meant seemed clear, but I thought I'd check. Those who have written bestsellers don't need to apologize for their writing!



And thank you for the compliment. I do try to give as much as I take from the forums, even though many here have more experience than me.



Best regards,



Michael

 

[housingrental]

Yes you are entitled to know the tenancy details even if you have hired a property manager.

I did write in my last post that you do not have to be involved, but it's a good idea to have some involvement.

At the very least have your PM send you periodic updates on everything, and send a few minutes reviewing them

It also does not hurt to do a yearly maintenance inspection through with the PM of each property if your time allows. A) It can put your mind at ease and B) If there are issues being left unresolved by your PM your more likely to spot them

 

[Hamiltonriver]

Thanks Russell for your advice. I know I am responsible ultimately. If my property manager is not doing her job, I should deal with it.

Thanks Adam for your tips. I would definitely follow up with my manager.

Judy

 

[MTNPARK]

I am a Property Manager in Calgary.



In Alberta, you are required to be licensed by the Real Estate Council of Alberta to "trade in property management" i.e. manage rentals, show properties, collect rent etc...



Now there are several companies doing this without a license which is illegal and exposes their owner clients to alot of liability... What happens if they show the unit and accidentally leave a door open and someone breaks in? Are they even insured?



You can actually verify license status in Alberta by visiting https://www.reca.ca/online/aspx/pubinquiry.aspx



I suspect in Ontario there are similar rules for licensing and you should be able to easily verify license status.





Additionally ask for references. My existing clients regularly give me references for new prospective clients, if your property manager does a good job then they should be able to give you mulitiple references.



For fee structure expect to pay 8-12% for a single family home, condo, townhouse. I have seen up to 15%, but that seems pretty high to me. We charge on average 10%.



Also there will be a separate leasing fee for vacancy turnovers. Anywhere from $350 to one's months rent, depending on the company.





Hope this helps. Good luck.

 

[DavePalmer]

I am a property manager of single family homes and condos in Calgary and here is what you should expect

A monthly financial report

A monthly payment of current months net rent after expenses

An email advising you of any maintenance about to take place so you can plan your cash flow

A description of the tenants going into your home. Not a copy of their application nor their credit report because of the privacy laws that make the property manager responsible for all information collected and they lose control by sending it to anyone else including the owner

You should not be bothered by normal activity in your property but you should definitely be advised of anything major going on like a notice to vacate or a court action

We prefer that an owner not go to their property without one of us because of the hidden agenda some tenants have and especially because any decision we make is usually in writing but when an owner goes alone, we lose that written trail of information.

Some property managers have a master insurance policy that is better than what you can get on your own. Ours has unlimited vacancy, tenant vandalism , water escape, sewer backup and replacement cost

They should advertise yoiur property on several web sites

A property manager must be a licensed real estate broker and that protects the owner an many different ways

We are not miracle workers so take our advice on rental values and required maintenace so your home rents quickly

Our goal is to provide a carefree armchair investment to our owners

Hope this helps to give you a perspective of what to expect from a property manager

 

[housingrental]

MTNPARK - Ontario does not require a license