Property Management Firm Or Residental Manager

Comments(13)

• 
  myfrogger19th December, 2003

  Professional companies are often more experienced than some resident manager you get to live there. However, if you are managing the unit yourself, you may discount the rent to someone to help look after it and be a contact there so you don't have to be runing over there for stupid things. If you want no work, go with the pros.

• 
  cplxinvestor21st December, 2003

  myfrogger
  
  Thanks for your reply. Have you used a situation like you describe? what did you have the tenant do? How did you find the correct person for the job?
  
  Thanks

• 
  DaveT21st December, 2003

  There is another aspect to using a resident manager that probably should be asked in the Legal Forum.
  
  Is the resident manager your employee, and if so, what additional exposure do you have with a resident manager?

• 
  myfrogger21st December, 2003

  Basically route all calls, problems, etc through your resident manager. They will call you if need be. The less they talk to you the better. However, they should primarily make sure that the place stays rented and rent is paid on time each month. You should likely contract out snow removal and lawn care and keep the resident manager's job simple.

• 
  edmeyer21st December, 2003

  Part of your question was whether to get a residential manager. Here a building of 30 units would require one. You might check on this. Probably DaveT knows.

• 
  DaveT22nd December, 2003

  Quote:Look for a good property management firm for a 30 unit building I am planning to buy in the Kannapolis/ Concord area of NC.
  cplxinvestor,
  
  Before you start your employee search, have you done your homework on the economic viability of your proposed acquisition. I understand that Cannon Mills, formerly a major employer in that area, has now closed shop. What other industry is in the area to support your rental demand? Does the local chamber of commerce project employment growth by attracting new businesses to the area?
  
  Should you go ahead with your acquisition, you may not have many options regarding professional offsite management. I don't know the area very well, but it does strike me as rather rural and may not have a large inventory of rental units to attract a professional property management company to locate in the area.
  
  If your choices are to go Charlotte to engage professional management services or to hire an on-site resident manager, I would opt for the latter. You will need to become well versed in the Landlord-Tenant law and train your resident manager in all the basics. Best to restrict your manager's powers to taking employment applications, accepting security deposits, move-in and move-out inspections, and taking trouble calls. Reserve application approval to yourself, and take care of eviction processing too. I leave it up to you whether you want your manager to collect rent checks (never accept cash) or have the tenants mail rent checks to your P.O. Box.

• 
  cplxinvestor22nd December, 2003

  Thanks for the replis.
  
  DaveT
  
  Thanks for information regarding Cannon Mills. I don't believe this property is affected by their misfortunes. I will do some research about it. The property is currently running at 90% capacity. I have contacted a management company in the area and they indicated they would manage it. They currently manage about 80 single family homes and a 6 unit. Cost is 10% of Gross. This includes advertising which they do on a weekly bases. My main concern is maintenance, this includes yard, plumbing, electricity and more. Can I rely on a property management company to keep up with tenants’ maintenance issues? I will probably use the management company; at least for a while. I will see how it will work out. Thanks
  
  
  [ Edited by cplxinvestor on Date 12/22/2003 ]

• 
  DaveT23rd December, 2003

  How is the property being managed now?
  
  Are the condition and appearance of the property satisfactory? If so, then the current management seems to be working. If management is already in place, why not just continue to use it?

• 
  jpchapboy23rd December, 2003

  Regarding resident managers:
  Back in the day I was renting I saw lots of ads in the paper about resident property managers. Put an ad for reduced rent or something and screen the people who reply to be sure they are handy enough and on the ball enough to handle all the tenant issues you want the manager to take care of. I agree with dave about what the manager should and shouldn't be in charge of.
  Josh

• 
  cplxinvestor23rd December, 2003

  DaveT
  
  Currently the property is owned buy a company with their own internal management team. I will need to find my own management when i take it over.
  
  thanks

• 
  cplxinvestor23rd December, 2003

  jpchapboy
  
  Thanks for your idea I will consider using it.

• 
  starmand23rd December, 2003

  I noticed that you said that the mgmt company is asking for 10% of Gross. Is this common or can one negotiate to say 10% of NOI.
  
  I only ask because I read Robert Allen's book and he recommends paying out of Net.

• 
  norrist23rd December, 2003

  I would at least inquire for the 10% of NOI. If you don't ask, you can't get a yes.