Hello everyone, I was a few days ago in the banner of this respected forum together with Lior who posted…
Hello everyone,
I was a few days ago in the banner of this distinguished forum together with Lior who posted our podcast,
And I really wanted to write some uplifting post, but due to what I recently went through, I have to share something with you about management companies !!
I work with several management companies that manage my assets and my investors, and so far I have seen and experienced a variety of forms of management and mainly understand how I get the best out of working with them.
It is said that investing in a rental property can rise and fall on the management company. Agree?
So like that, there are management companies that will eat us all the profit and there are management companies that will be fine, but need to find them and interview them.
Examples of problems I encountered while working with management:
- Bring one quote for some repair (which comes out pretty expensive) and because it's a bit urgent don't bother bringing in more bids that could have lowered the cost.
- Begin tenant evacuation process (late payment) and not notify landlord.
- After a tenant entered the property, forgot to transfer the accounts to his name, and it came out that I had paid the tenant's accounts for about two or three months.
- Make relatively expensive repair (say $ 400-500) and announce only after the repair.
- They say you need to fix some device or anything at home - but don't send a picture or anything to help you understand.
And there are also worse things that I would unfortunately not encounter .
so what are we doing???
First and foremost - Review the financial report Who receive every month and make sure every expense is understood and what it was.
And if something is incomprehensible - investigate and understand, draw conclusions.
Believe me, I constantly run into people who neglected the report review and have no idea what is going on with their spending / revenue.
Second - to follow the company's behavior -
If there are many repairs to the property, you will be asked to notify you before each repair and you will have the option of sending your own handyman.
It's not always going to be smooth and there is a situation that will make you muscular and say it's not possible - so first, check out this option with management before you start working with it,
And if you are already working with it - try to reach an agreement that has started for a certain amount (say $ 300), the landlord can send a professional on his behalf.
When you are offered a repair on something big (for example - plumbing, roofing, HVAC), ask how many companies have taken bids, and this is of course the time to bring someone of your own.
Very important - to work with a management company that can terminate the contract within a month or two and not sign a one-year management contract!
Isn't that what we call passive income ?!
So it's not exactly passive, but with a little work and attention, we can save ourselves a lot of work in the long run.
Now that I am looking for an executive, I know exactly what kind of behavior I expect and how exactly to interview them to get what I want to work with.
Who wants me to check a list of questions for a management company? He would turn to me.
Roee Agami
Very beautiful light. The most important thing, however, that a management company must do is find us a good tenant. If there is a good tenant, everything else is negligible. The easiest is to let in the first tenant who is interested in the property. This is the main mistake
From my experience, I think 9-10% is high. You can also find 6% and 7%.
Another thing - be in touch with the tenant. Let him have your email. If there is a repair you can always check with him…
So important!
Light, well done to you for this post. You save a lot of people from mental health.
Thank you!
You mean management fees?
On the road 9-10% monthly.
For new tenant placement 75-100% of the first month.
And many take on a renewal of a contract too. From my experience, up to 200-150 $.
Excellent post!
Apart from the cost of repairs, etc. What is a reasonable monthly payment for a good management company?