 Management Fee (by DJ [VA]) Apr 10, 2024 8:01 PM
 Management Fee (by NE [PA]) Apr 10, 2024 8:05 PM
Management Fee (by Jason [VA]) Apr 10, 2024 8:16 PM
Management Fee (by Jason [VA]) Apr 10, 2024 8:17 PM
Management Fee (by ken [NY]) Apr 10, 2024 8:24 PM
Management Fee (by DJ [VA]) Apr 10, 2024 8:24 PM
Management Fee (by Jason [VA]) Apr 10, 2024 8:29 PM
Management Fee (by 6x6 [TN]) Apr 10, 2024 8:40 PM
Management Fee (by DJ [VA]) Apr 10, 2024 9:43 PM
Management Fee (by ken [NY]) Apr 10, 2024 10:04 PM
Management Fee (by Still Learning [NH]) Apr 10, 2024 10:17 PM
Management Fee (by zero [IN]) Apr 11, 2024 7:33 AM
Management Fee (by MikeA [TX]) Apr 11, 2024 10:09 AM
Management Fee (by Ray-N-Pa [PA]) Apr 11, 2024 1:37 PM
Management Fee (by GKARL [PA]) Apr 13, 2024 6:38 PM
Management Fee (by zero [IN]) Apr 14, 2024 10:17 AM
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Management Fee (by DJ [VA]) Posted on: Apr 10, 2024 8:01 PM
Message:
I have been asked by an acquaintance (my former book-keeper) to manage their house for them as a rental, since they are moving to another state.
I've spoken to a few different people and am seriously considering it.
I'm working on getting a management contract, and wondering what fee I would need to get to make it worthwhile.
Considering I would have to pay self-employment tax.
Off the top of my head, with no real market research yet, it would probably rent in the range of $2K /mo. What would my (10%?) fee be expected to cover vs what would be an added fee?
Also: any of you who manage for others ( or hire someone to manage for you) What is a typical and reasonable fee for the different things the manager does?
Yes, I'm doing other research and do have an idea for some of these answers, but I value any input y'all can offer from your experience.
Thanks! --68.229.xxx.xxx |
Management Fee (by NE [PA]) Posted on: Apr 10, 2024 8:05 PM
Message:
Why don’t you see if they’ll sell it to you over a long term contract instead? --24.152.xxx.xx |
Management Fee (by Jason [VA]) Posted on: Apr 10, 2024 8:16 PM
Message:
“Technically” in VA you have to have a broker’s license to manage for others. That said, I manage for other people as well and don’t have a broker’s license. I charge 10% per month, $75/hr for basic repairs/hire out the rest. I also charge lease renewal/lease signing fees ($300/yr) and charge a vacancy rate of $400/month. --73.152.xx.xxx |
Management Fee (by Jason [VA]) Posted on: Apr 10, 2024 8:17 PM
Message:
Also it’s written into my agreement that I keep all late/penalty fees. --73.152.xx.xxx |
Management Fee (by ken [NY]) Posted on: Apr 10, 2024 8:24 PM
Message:
I pay 10% of rent collected,I simply am done talking to tenants or being responsible for emergencies.My manager takes the calls,coordinates repairs etc. i primarily flip houses and keep my time available so when i get a call from a motivated seller i can go at a moments notice, i like dealing with stupid sellers but not stupid tenants --74.77.xx.xx |
Management Fee (by DJ [VA]) Posted on: Apr 10, 2024 8:24 PM
Message:
NE: Hmmmm...... you've got me thinking.
They want supplemental retirement income. I suppose that could just as well come from holding a note instead.
Or maybe a sandwich lease.....hmmmm..... That could be a lot simpler, maybe.
Jason: What's the definition of vacancy rate? You get that even when it is empty? That is more than my 10% would be. How does that compare to the regular monthly fee? --68.229.xxx.xxx |
Management Fee (by Jason [VA]) Posted on: Apr 10, 2024 8:29 PM
Message:
We do a lot more work during a vacancy, so the price goes up. I’m not going to spend my time dealing with hundreds of prospects over $130/mo. Even $400/mo is cheap. Some places around here charge 50-100% of the base rent --73.152.xx.xxx |
Management Fee (by 6x6 [TN]) Posted on: Apr 10, 2024 8:40 PM
Message:
Following --76.129.xxx.xx |
Management Fee (by DJ [VA]) Posted on: Apr 10, 2024 9:43 PM
Message:
I can understand that, Ken.
That makes sense, Jason.
Thanks
Looking at rough numbers, it seems I could do much better buying, if they will seller finance.
But how to sell that idea to them, because they would net less each month. --68.229.xxx.xxx |
Management Fee (by ken [NY]) Posted on: Apr 10, 2024 10:04 PM
Message:
DJ, ask if they would be willing to hold a morgage? be prepared to explain what that means because i usually get no i dont have a mortgage so i learned to say instead of me going to a bank and paying them i pay you monthly instead of a lump sum now, if they have any interest they will usually then ask if they collect interest like a bank does? that is your chance to sit down with them and show them how it all works. they usually need to be rid of the place more than anything else for me to be able to get them to hold a mortgage but always worth asking, it also works to then explain if they would hold a mortgage i can come closer to there asking price but if not i can talk cash offer which prepares them for a lower cash offer --74.77.xx.xx |
Management Fee (by Still Learning [NH]) Posted on: Apr 10, 2024 10:17 PM
Message:
Property management companies around here charge 10% of rents, hourly fee for maintenance and take 1st month rent of tenant’s they place (that amount is guaranteed for a year so if the new tenant breaks the lease and they place another tenant within that year they do not get their first month’s rent). --73.159.xxx.xx |
Management Fee (by zero [IN]) Posted on: Apr 11, 2024 7:33 AM
Message:
DJ, you sell the idea by explaining you will be responsible for any and all maintenance. None of my bank loans stipulate they will replace a roof or provide on call service from contractors.
They get worry free money. Maybe you can get them to stretch the loan out even longer so they can collect into retirement? --107.147.xx.xx |
Management Fee (by MikeA [TX]) Posted on: Apr 11, 2024 10:09 AM
Message:
Managing for others almost always require you to have a license and work under a broker. A sandwich lease should should be a loophole that gets you out of that.
If it were me, I would first ask to buy it and them carry the note. That gives them their monthly income stream and is absolutely clean for everyone. You get the benefit of property appreciation over time.
Otherwise, do a NNN lease (that allows subletting)at 50% of market rent and then you lease it out. If the house is in decent shape (IE: won't need a roof for a few years) then you should be in good shape. The down side is they get to keep the property appreciation over time.
If they still have a mortgage on it then you might do a hybrid NNN converting to a purchase with note cary when paid off. --209.205.xxx.xx |
Management Fee (by Ray-N-Pa [PA]) Posted on: Apr 11, 2024 1:37 PM
Message:
I pay myself 7% so I can claim an active income on my passive income. I do that so I can fund my Roth 401K annually. Yes I have to pay self employment taxes on that small amount, but I also get a company match.
The typical spread around here is 6-10% and one half of the first month's rent.
--24.101.xxx.xxx |
Management Fee (by GKARL [PA]) Posted on: Apr 13, 2024 6:38 PM
Message:
I vote for buying as well. I have absolutely no interest in managing property for someone else. --209.122.xx.xxx |
Management Fee (by zero [IN]) Posted on: Apr 14, 2024 10:17 AM
Message:
I managed a local property for a German lady. She left the place full, as in completely. Even had a car in the garage. Wanted me to rent it out for her when she went back to Germany.
It was a disaster. She didn't want to use cell phones as landlines were cheaper for her to call. Yet she would call me constantly. Sometimes seven times per day.
Tenant would pay rent with a check and on time but the owner wanted the money in her account right then.
The biggest problem was when the ex husband and CPS showed up to the rental and accused the tenant of hiding them. Guess the lady took her kid and fled the country.
I backed out of the arrangement. Handed it over to another crew and was happy it was over. --107.147.xx.xx |
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