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Property Management Job

January 8th, 2014 at 07:00 am

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.


8 Responses to “Property Management Job”

  1. Another Reader Says:

    In many states property management requires a real estate broker's license and classes in property management. Usually funds have to be kept in separate trust accounts. Check with your state's department of real estate to see what is required to manage property for other people. There are serious legal consequences in some states if you do not comply with the regulations.

  2. snafu Says:

    Wish you luck in getting the job of property management. Have you checked the current rate paid for property managers in your area? I know it's regional but seems low to me. DH and I managed a small, 6 unit apartment building while I finished college and our renumeration was higher, all those years ago.

    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.

  3. TashaC. Says:

    ohhh ok I'll check with my state and see what they require. And 10% is what we paid when we hired a property manager because we moved out of state. I am expecting to be on call 24/7 and to be expected to handle the responsibilities listed above. I have a list of topics to discuss such as repair options, landscaping options, deposits, paperwork, rent increases, utilities, pets, maintenance...general expectations between her and I. And I do plan to get myself insured as a property manager. I'll check if there are licenses required to carry the insurance.

  4. momcents Says:

    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. Smile

  5. creditcardfree Says:

    You do have experience managing your own properties, so I would guess you do know what you are getting into. One thing I might consider, is a trial basis, since it is different than managing your own properties. I do hope this works for you!

  6. TashaC. Says:

    Generally I have found that this business is minimal hrs required followed by a few flurries of "earning the paycheck". Finding tenants, coordinating move outs and cleaning vacancies can be time consuming. But most tenants are low maintance and maybe require a conversation or two a month.

    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.

  7. Kiki Says:

    If she was paying him $1100 a month and he had a place to live, why would you accept less than $1100, even if you don't need the living space? She will make more money renting that property out to another tenant if you don't need it.

    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.

  8. TashaC. Says:

    The property manager was living for free in her unit worth $1100/month. So that is what she was paying him.

    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.

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