Wanting To Get Into Prop Management In Dallas
Hi,
I am a new RE agent in Dallas and would like to get into property management. How should I get started? What are tips you wish you knew?
Kat
Hi,
I am a new RE agent in Dallas and would like to get into property management. How should I get started? What are tips you wish you knew?
Kat
Kat,
Those are some very broad questions for such a very large topic. The best thing you can do is:
1) read, read, read to better understand the ins and outs
2) emerge yourself in the field
3) consider working for another PM to get your feet wet
I fell into prop mgm out of a necessity to increase my cash flow on my own properties. Other investors started asking me to manage theirs. Some key things to really understand are:
1) How to keep vacancy rates low while also keeping evictions low
2) Understand your local competition ... how much do they charge, what are their services (ie do they pay bills for the clients, do rents go to them or the owners, etc.)
3) Figure out how to develop relationships with the right vendors (maintenance, lawn care, plumbers, etc.).
If possible, find out what owners in your area complain most about with their PMs. I found out that most of my clients were frustrated with untimely and inaccurate statements. I focused on this as a marketing tactic.
Just some thoughts but I would read a lot of books -- there are a lot out there -- and also join the national organization.
The numbers look good, as you no doubt can see. What is the vacancy rate in the building? Is it easy to rent? Renting to students can result in summer vacancies and insurance problems; is there a good non-student rental market?
Chris
i have owned condos since 1986. on the positive side
the large percentage of normal property maintenance
fall on the shoulders of the asssociation. Your insurance is a fraction of what it would be for a SF or MULTI. Tennants pay
utilities and your waterbill is paid thru your monthly assessment which is tax dedutable . On the flip side
The decision on what maintenance gets done is decided
by someone else which may or maynot be to your liking.
Tennant selection is out of your control,other than your own unit. you maybe very cautious of who you rent to while the owner next to you could care less as long as he gets his money..
Check the associations financials find out how much of a reserve they have. If a major expenditure comes up, will you get whacked with a special assessment? that would wipe out any positive cash flow for the duration of the assessment.
With a one bedroom you probably wont have major tennant problems. thats a huge plus.
your tennants are not going to stand for a bunch of rug rats running across the floors above them,so check out the other tennants in building.
If you do purchase this unit i would advise that you get on the board of trustees at the next election.
Best of luck
[addsig]
i have owned condos since 1986. on the positive side
the large percentage of normal property maintenance
fall on the shoulders of the asssociation. Your insurance is a fraction of what it would be for a SF or MULTI. Tennants pay
utilities and your waterbill is paid thru your monthly assessment which is tax dedutable . On the flip side
The decision on what maintenance gets done is decided
by someone else which may or maynot be to your liking.
Tennant selection is out of your control,other than your own unit. you maybe very cautious of who you rent to while the owner next to you could care less as long as he gets his money..
Check the associations financials find out how much of a reserve they have. If a major expenditure comes up, will you get whacked with a special assessment? that would wipe out any positive cash flow for the duration of the assessment.
With a one bedroom you probably wont have major tennant problems. thats a huge plus.
your tennants are not going to stand for a bunch of rug rats running across the floors above them,so check out the other tennants in building.
If you do purchase this unit i would advise that you get on the board of trustees at the next election.
Best of luck
[addsig]