A Few Questions...
This past summer there was a fairly small duplex house near where I worked. The owner had some people working on painting, carpeting, repairing, etc. it for a few weeks.
Now I have seen two For Rent signs in the front of it, but these For Rent signs were with a local Real Estate Company.
My question is: If the owner of the duplex house is not affiliated with the local real estate company, why wouldn’t he just rent the house out on his own?
I think in GA, realtors get 7% of each house sale that they make. Since this guy apparently is using the local RE company, does he have to give 7% of his monthly rent payment to them? If so, for what duration?
Or does the fact that this house has the local RE companies sign mean that the local RE company owns it?
Thanks.
They are probably managing it. The sales commission has nothing to do with the management fee. Property management fees are usually 10 percent, although if the Owner has them manage multiple units, they may only charge 5 or 6 percent. Normally, the management company also keeps the first month's rent as a fee.
[addsig]
some landlords do not want to go through the paper work and rental background checks on tenants so they get an agent to do that for them ,some of them charge a first month rent,I hope this helps
Quote:
On 2004-11-10 12:34, LeaseOptionKing wrote:
They are probably managing it. The sales commission has nothing to do with the management fee. Property management fees are usually 10 percent, although if the Owner has them manage multiple units, they may only charge 5 or 6 percent. Normally, the management company also keeps the first month's rent as a fee.
What does Property MGMT fully consist of?
Mowing? What else?
Were all the repairs, painting, etc. that I saw the owner have done this summer probably financed by the owner, and then he is using the RE Co. to find tenants & to manage the property?
Thanks.
Property management consists of whatever it takes to keep the business going. Finding renters, collecting rent, managing repairs, whatever it takes. Mgt. Co's are useful if you get more units than you can easily handle, don't want to spend all your time handling calls from renters, and want to spend more time out working deals.
Quote:
On 2004-11-10 13:28, jam200 wrote:
Property management consists of whatever it takes to keep the business going. Finding renters, collecting rent, managing repairs, whatever it takes. Mgt. Co's are useful if you get more units than you can easily handle, don't want to spend all your time handling calls from renters, and want to spend more time out working deals.
Ok thanks. What are the most common, routine management responsibilities of PM's?
So far this a Georgian only thread.
Maybe too much competition for me in GA?
Thanks.
Common duties? Well, collecting rents, taking care of maintenance/repairs, and keeping the houses occupied.
Nah, there's TONS of room left for more investors here...
Property Manager work particularly well for out-of-state owners, too. They will field calls, show the property, advertise, take applications, screen tenants, run credit and background checks, collect rent, pay mortgage company for you, take calls 24/7, supervise repairs, evict, handle deposits, etc.
Ideally, the property manager would be licensed. Being licensed, they are required to keep deposits in an excrow fund, and keep strict records.
I bought a pre-foreclosure apartment complex earlier this year from a fellow who chose to use an unlicensed "manager". I don't know what kind of screening the manager did, if any. He collected deposits, and rents for awhile...then suddenly disappeared with all the money. Thus a leading cause of why the property was in preforeclosure. A sad story!
If you must , for whatever reason, use an unlicensed property manager, make sure you get them bonded.
I once heard of an investor that bonds everyone that handles his money. When he attempted to get a bond on a prospective on-site property manager, the bond company said the individual was not bondable. Apparently he had a record of embezzlement!