i just got my property management course from allied schools and wanted to start up a discussion on the commercial side. please share your thoughts.

where would you like to manage property?

im in southern california

im looking at multi units 5+ apartments. if i can find an apartment that has a good cap rate, then ill probably want to manage the property myself just to get the experience and then hand it over to a professional management company afterwards.

im also talking to a condo conversion consultant. if i find an apartment with a low cap rate, high vacancy and has potential for a complete rehab, id like to convert it and maximize the profit return. id structure an equity share with the consultant.

I did it a little and couldn't stand it.Property management is definitely off the list for me.

Some people pay to have it done,usually in our area it's half of first months rent and 8 to 10 percent of each months rent after that.

In commercial it's usually a percentage of each units rent and can go up or down depending on how it's structured.

This lady i met in an investment class does commercial property management and loves it since most businesses are 9 to 5 and she gets weekends off.I asked why she was in the investment class and she said just to meet her ce requirements for the year.She makes a ton doing it,it's just never been my thing.

I hope you like it.

I don't see how you can be a property manager for someone else without any experience unless you have current clients who would trust you. I managed my own properties for a while and for a referral client. It wasn't tough, but seemed like a lot of liability for lower pay.

Now that I use other managers, I'd want them to have an IREM and/or NARPM certification, which is not easy to obtain.

hi dee
i want to manage my own multi unit property first just as you did. i agree about the liabilities and lower pay if i were to add this to my tool belt. my intention is just to gain the experience just to see if its something that i will like or not. if not, then ill pass it along to a professional.

when i find a good multi unit with sufficient cashflow, i would factor in 10% for property management if i cant handle the management myself.

Alvin, is 10 percent cost "aproximately" the going rate for a property manager of 5+ units? The 10% figure would be 10% of what? Total cost? Yearly expenses?

im not too sure. ive been reading others have been paying 10% of net profits per month. it should be negotiable between you and the management company. ill do some research and post my findings.

I currently am paying 8% to have my property managed.

Frankly, my property manager sucks - and they are supposed to be the best in my town.

In fact, when I get back home I am seriously thinking about adding property management to my service list. If so, I would most likely hire one person to start off as the manager of the operation (I don't want the calls in the middle of the night!).

I think the idea of trying out property management with your own multi-unit is the smart move.

R

Here, property management rates are 10% of the rent.

If you decide to do property management make sure it is done under a different LLC that your other activities.

what is this certification and how do pm's get it?

IREM and/or NARPM certification, which is not easy to obtain.