Need Help With Property Management
I have an apartment complex which is taking a lot of my time. I plan to look for a property management company or individual to manage this building. What is a fair charge for the percentage of gross collected rents? Who pays for the advertizing? Do they pay the mortgage and escrow payments and then invoice me monthly? Who pays for tenant screenings (re: credit checks, background checks, etc.) Does the management company get approval from me before making improvements after a tenant moves out? Is there anything else I need to know? Your help is greatly appreciated.
What is a fair charge for the percentage of gross collected rents? == ` I usually pay 10%. I have paid as low as 8% few yrs ago negotiated 3 rentals in 1 neighborhood.
Who pays for the advertizing? == That is negotiable. I have had them pay for it when they had free/cheap connections. I also have paid for it if I think it gets a vacancy handled quicker. Now, I offer to have my # if my vacancy loss is high. I have the time to screen and take calls.
Do they pay the mortgage and escrow payments and then invoice me monthly? == Most will if you supply info. and request.
Who pays for tenant screenings (re: credit checks, background checks, etc.) == They do, but watch for conflicts of interest.
Does the management company get approval from me before making improvements after a tenant moves out? == You should require this feedback and discussion. Not sure how to keep power here, but you should .
Is there anything else I need to know? == WATCH OUT FOR CONFLICT OF INTEREST MANAGEMENT TEAMS WHO NEED YOUR PROPERTY TO SUPPORT THEIR REPAIR BUSINESS(ES). ==WATCH FOR COMPANIES TOO SPREAD OUT, TOO BUSY TO TAKE CALLS, TO BUSY TO RETURN CALLS.
== WATCH OUT FOR CONFLICT OF INTEREST CO/BROKERS WHO LIST/SELL PROPERTIES....