What do Property Managers do?

[MikeMcC874]

What exactly to do Property Managers do? Is it dependent on what you pay them to do?

Find and screen tenants?
Collect rents?
Deal with Evictions?
Deal with repairs?
Do the repairs?

I hear they can be from 5-10% of rents. What do you get for that money?

Thanks
Mike

 

[Thomas Beyer]

They do three things .. called the three R`s :

They RENT the property .. i.e. advertise it, screen potential tenants, sign leases, collect money monthly

They REPAIR things as needed .. and work with appropriate sub-trades, be they painters, roofers, plumbers, ..

They REPORT to you, owner via monthly or quarterly accounting statement

Thus: you get a life !

You get time to focus on the two most important aspects of any real estate investor:
a) find JV money partners and
b) find decent assets

Yes it costs 10-12% for a townhouse or single family or condo ..

maybe 6-10% for a duplex, 4 plex or 8-plex
maybe 5-7% for a 12-18 plex
maybe 4-6% for a 20+ plex
maybe 3% to 4.5% for a 50+ plex

 

[housingrental]

Good concise post from Thomas. To minimially elaborate on his:
Repair - Most coordinate the repairs but don`t actually do them. Some companies have internal maintenance workers but bill out extra for this above the fee.
They act as landlord and point of contact for the tenants. Most property owners have almost no involvement in their properties. It changes running rentals from an active business to a passive investment.