Last night I was attending a free Rich Dad/Poor Dad Seminar on Real Estate. I did not sign up for the follow up 3 day class session but it motivated me to increase my wealth.
While I was at the seminar- husband was at home babysitting. But what he was really doing was working on getting us a Property Management job!
Apparently, FIL's former landlord called him worried because she had not heard from her property manager in 6 weeks. She lives 4 hrs away from the area. She called FIL because he was the most recent tenant who lived near the property manager (they shared a duplex). FIL has had no contact and proceeded to tell her that the guy did a bad job anyway.
He was living in one of her properties, not responsive to phone calls, lazy, unprofessional and a drinker. I met him a few times and I was irritated that he was so relaxed about his job. And I just learned she was paying him $1100/month!
So she asked FIL if he knew of anyone that could help her. She owns 2-4 (I don't have an exact number) properties in our area and is without a property manager. She is older (FIL guessing over 75 yrs old) and relies on the rent for retirement.
So FIL thought of husband and I! He called husband to see if we were interested which we are! And he set up an appointment for me to talk with the woman today at 2pm!
I've already come up with a list of discussion items. Our fee is 10% of collected rent with a $200 finders fee for filling empty units.
My biggest concern is the fact that the property manager was living in one of her units. If I drive over there and he is found inside...I'll have an ugly eviction on my hands or he'll hear about what is happening and try get his job back.
But if this works out then I think we'll be adding $400-$800 month to our income! Depending on how many units she has and the going rent.
AWESOME!
Property Management Job
January 8th, 2014 at 03:00 pm
January 8th, 2014 at 03:12 pm 1389193945
January 8th, 2014 at 03:19 pm 1389194340
It's critical to nail down your responsibilities as manager. Do you actually collect rent, make small repairs, hire tradesmen, on call 24/7, clean or hire cleaners on move out or responsible for eviction process which has lots of rules/legal process etc? When things go well it's straight forward and easy money but when things go off track tenants want you to come deal with a loud, late night party or drippy toilet at midnight. Worse yet is if you get a grow op that physically destroy the building.
January 8th, 2014 at 03:24 pm 1389194685
January 8th, 2014 at 03:36 pm 1389195373
If it's not your property, it isn't worth the hassle for $400 - $800 a month. I say this as someone whose husband "managed" apartment buildings. This involved phone calls at all hours of the night. It also involved having to deal with the States Attorney on an issue regarding a tenant. If your husband is responsible for child care primarily during the day, will he be able to drop things at the drop of a hat to go and deal with issues. In the event that a bum tenant goes in (despite looking good on paper and credit-wise), find out what your liabilities are. We were actually stalked by a crazy tenant and needed to involve the police. May you have better luck than we did at this whole thing.
January 8th, 2014 at 03:41 pm 1389195665
January 8th, 2014 at 03:57 pm 1389196652
My 2014 goal was to increase our monthly income by $700/month. This will fit that goal or get it started. Neither husband or I work aside from our own properties.
We have time to do this. And I am hoping it will increase our contacts/knowledge because this is the industry we have chosen. So I se this as a step into mastering the craft/ building a reputation.
January 8th, 2014 at 05:14 pm 1389201281
Don't sell yourself short. She will make money if you don't need the living space. Ask for what she was paying the previous guy minus the rental home. Point out the benefit that she makes more money and negotiate a rate change for the following year into your contract.
January 8th, 2014 at 05:32 pm 1389202366
10% is what I charge because:
1)FIL already told her that was our price before he even called us.
2) As rents increase so will our income. The property FIL lived in could get some upgrades and get more rent. I am guessing the same for the others. The old property manager was not very motivated considering his salary was the same no matter what- so he was inclined to be lazy about upgrades or repairs.