Looking For Suggestions On Other Income Streams My Managament Company Can Start Offering...

I own a property management company that fee manages around 2,000 apartment units. We have been trying to come up with another service we could offer that would provide another revenue stream. The problem with fee management is the uncertainty of the business and the time it takes to replace business that is sold off to owner-operators, etc.



Does anyone have any ideas?

Comments(22)

  • cjmazur2nd February, 2008

    the reason one might need to be a lawyer is to handle the procedural curl ball the otherside might pitch.

  • cjmazur2nd February, 2008

    I say yes to the trees and no to gravel (sand/stone mixture), yes to stone, pavers, etc.

    Need some green spots too

  • d_random2nd February, 2008

    Some of my favorite low maintenance plants/trees/vines are Daylilies, Monkey Grass, Passion flower (a evergreen vine that is great on trellises or chain-link fences), Sungold Cypress, Crape Myrtles. Really depends on your area. These have worked well for me during a drought in the south.

  • kdub17772nd February, 2008

    Sounds good. I will look into all of this info. I live in a high desert in western CO. I am thinking grass in the back yard and some minimal landscaping in the front.

  • cycledog11th July, 2007

    Maybe he is buying 4 B/R crack houses and renting them out section 8. If you have a gut feeling the area is improving and you are not afraid to go into these gang infested areas....

  • rehab2day11th July, 2007

    Your sentiments are in line with mine. He was not talking annual numbers but monthly and was a bit beligerent about it when I questioned him. He says in Pittsburgh and Cleveland areas this is attainable...anybody in the Pitt or Cleveland area confirm this?

  • bwb91111th July, 2007

    Hey,

    I am not sure what the problem is here. I can buy houses ALL DAY LONG that have a purchase price that is 50 times that of rent.

    For example, I buy a house with a Purchase Price of $100k, put $150k of repairs into it, and then rent it for $2k. That makes the rent 2% of the Purchase Price.

    Easy. Anyone can do that.

    That was the question...right?

    bruce

  • rehab2day11th July, 2007

    nice work!
    can you share details on how you made this happen? is it in Buffalo?

  • Bobe7311th July, 2007

    I have been listening to people talk about the 1% and 2% rule but have never seen a property cash flow at those numbers without putting down 20%.

    I typically use 100x Month Rent as a rule of thumb to determine if the property is listed at a realistic asking price. The problem in my area, is that everything is so rediculously priced that nothing short of a large down payment even comes close to breaking even never mind cash flow. Seems to be a lot of new investors buying without the understanding of the numbers.

  • rehab2day11th July, 2007

    A big problem around these parts was a lot of stock money being put into multi-unit properties back in 04-05 driving prices to insane heights. A very large down payment is required for most 2-4 unit dwellings to flow positive.

  • smithj215th July, 2007

    rglover,

    Typically when calculating the viability of a rental using any type of rule, I advocate assuming 100% financing as the baseline. Using 10%, 20% or any other amount down only skews the numbers. Any property can be made to "cash flow" with a large enough downpayment.

    So for investments, to really know what your property true cash flow is, I always assume 100% financing. Any downpayment after that just helps to improve "cashflow".

    JS

  • sunny_818th July, 2007

    I have tried this 1% rule, and so far have never had it work for me besides in the rough areas which are far from the city. Never mind the 2% rule.

    Anyone in the chicago area that gets the 1% rule working to make a place break even without millions down...let me know....coz I have seen stuff that does not come close.

  • jerlaff63rd February, 2008

    All my properties have more than 2% return:

    4plex for $46,500 and gross rents 1625 = 3.5%
    2plex for $44,000 and gross rents 1255 = 2.8%
    2plex for $43,500 and gross rents 1200 = 2.8%
    2plex for $46,000 and gross rents 1200 = 2.6%
    2plex for $37,000 and gross rents 1075 = 2.9%
    2plex for $45,000 and gross rents 1100 = 2.4%
    2plex for $39,000 and gross rents 1000 = 2.6%

    BTW, my cash flow is approx $100/unit. Most pay cash, but I have about 25% that are section 8.

    Jer

  • jerlaff63rd February, 2008

    I should also mention that I put 10% down on each of these (except the 4 unit - 25% down in that case).

    And the cash flow is derived after taking an immediate 30% off the top for vacancy, prop mgmt and repairs.


    Quote:
    On 2008-02-03 13:50, jerlaff6 wrote:
    All my properties have more than 2% return:

    4plex for $46,500 and gross rents 1625 = 3.5%
    2plex for $44,000 and gross rents 1255 = 2.8%
    2plex for $43,500 and gross rents 1200 = 2.8%
    2plex for $46,000 and gross rents 1200 = 2.6%
    2plex for $37,000 and gross rents 1075 = 2.9%
    2plex for $45,000 and gross rents 1100 = 2.4%
    2plex for $39,000 and gross rents 1000 = 2.6%

    BTW, my cash flow is approx $100/unit. Most pay cash, but I have about 25% that are section 8.

    Jer

  • NewKidInTown313th January, 2008

    Yeah, what Chris said. I just mow/mulch. No bagging, no raking.

  • joel14th January, 2008

    I try to create nature areas, blow as many leaves in there as possible. Then I mow the rest into the grass.

  • finniganps15th January, 2008

    Quote:
    On 2008-01-14 15:36, joel wrote:
    I try to create nature areas, blow as many leaves in there as possible. Then I mow the rest into the grass.


    If I did that, the leaves would either blow in the street or the neighbors yard.

  • jasons4th February, 2008

    I have a lake cabin with many 100+ year-old ash trees. Removing leaves is one of my biggest tasks every year! Each year, I haul out 20 dump truck loads (granted it is a small dump truck)!

    What I have found that works the best:

    I mow the yard in circles - creating about 25 separate piles. Next I lay down large tarps next to each of the leaf piles and I rake the leaves onto the tarps. I and a helper will each lift up on the corners of the loaded tarp and dump it into the dump truck. This is very quick and easy.

    This is a great method because you have very little bending over and you are not picking the leaves up by hand. This yard has way too many leaves to just mulch and also too many for a bagger - this would take forever.

    Hope this helps!

  • d_random4th February, 2008

    Thanks for all the suggestions! [ Edited by d_random on Date 02/04/2008 ]

  • pmatheson15th February, 2008

    In California, we do NOT return the Security deposit til receiving the property back in clean condition, with no damage and no unpaid utility bills. We have 14 days to return to tenant or provide an itemized list of what any deductions are for. Your state may be different!

  • smithj25th February, 2008

    HA, HA. This is really funny. She wants her security deposit while she is still in the property????

    Tell her that she does not get her security deposit back until she has moved out and you have verified there are no legitimate deductions. It is not your problem that she has to move immediately.

    Also, does your contract call for a 30 or 60day notice?

    JS

  • edmeyer5th February, 2008

    It is rare that a unit is returned to me with no expenses against the security deposit. You should also rely on strong leases if you are not already doing so. Mine have an amortization of painting and carpets and I have had some that require the tenant to have carpets cleaned before termination of tenancy.

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