Hello all.. Another question from this newbie...

A gentleman has contacted me who has 4 apartments that he wants someone to manage. He has one that is currently vacant and would like me to find a tenant for it, but also he wants me to handle the monthly management of it as well. I have a couple questions..

What is the norm as far as fees for this go. I know for me finding him a tenant we usually charge 1 months rents which 1/2 would go to me and 1/2 to the coop agent, if there is one. But how much is usually charged for the monthly management.

Also, Is this as easy as it seems, or am I missing a whole bunch of things that are going to make this complicated??

Thanks for any thoughts.

Opps.. wrong forum...

I will offer my two cents here.

Here in Minnesota, an agent needs to be a licensed real estate broker to run a property management company. Generally fees are 6-10% of the monthly rent, depending upon how involved the company may be.

There are some property management companies that pay out referral fees to real estate agents (their brokers) for helping show properties however. I have seen generally one half of one month's rent. I hope this helps!

Yes, it's the same as what Ryan posted here in Oklahoma. Our rental manager, who is licensed, also cannot manage property for someone outside of the rental company because of the requirement to have her license hanging at the broker's office where she works. Our realty broker's wife is also a broker and she's over the rental management company. I can manage my own rental property however without being licensed, and I did that for some years before getting my license. Now that I am licensed, I have to disclose to tenants that I am a licensed realtor (it's in the first line on the lease).

No License is required in Vermont to Offer Property for Rent or Lease. Some EX Real Estate people are actively engaged in this business.

No License is required in Vermont to sell a Mobile Home or a Business, provided there is no lot or land, or "Real Property" offered with it. Used Car Dealers receive a little bit more regulation.

Our Law seems to be silent on whether a License is required for the purpose of managing the property of others; but since I know many Property Managers who are not Licensed, I would say NO.

Our Legislature may now have to look into these omissions.

I am doing property management. I am in a slightly different situation than you, because I am managing mobile homes. People have bought these mobile homes and are paying monthly payments, like on a car note. They are responsible for all maintenance, repairs, taxes, insurance, etc. etc. Really all im doing is servicing the note, collecting payments, etc.

You asked if it's harder than you think, or if you are missing anything about managing. Let me give you a couple of tips.

- Get a voicemail. You can find one online- do not give out your cell phone number. I've used Copycall, it's like 48 dollars a year, but i do not know if they have numbers in your area. Just google voicemails, I'm sure you can find a bunch.

-Get a PO Box. They are like 30 bucks a year, but so very worth it. You do not want some guy knocking on your door at 11:58 on a Tuesday night, because Wednesday his payment is considered late

- If you are collecting the payments and forwarding them on to this guy, delay the first payment for a month. Let's say you start now and the first rent you are collecting is December. Tell him that he will receive Dec.'s rent on Jan. 1st, and on the 1st of each month every month after. This gives you time to collect the rent, even if it's late. These are renters you are dealing with and they are going to be late from time to time. (In fact the reason he's asking you to manage the properties is probably because he is tired of chasing money) You do not want him calling you every 2 days asking if you collected the rent from Psycho Bob in unit 3 yet.

- If they are late jump on them immediately and hard. Rent is due on the 1st, start calling at 7:00 AM on the 2nd and call their home at least 3 times a day, leaving a message until you actually get in touch with them. When you do get in touch with them, make them tell you a day and time when they will pay and hold them to it. I don't care if there is a five day grace period, start calling on the first day they are late. Make it very uncomfortable for them not to pay. They will hate you, but you only have to do this a couple of times before they start paying you on time each and every month.

- If he charges late fees in his lease, and they are late, AND you have buffered the payments by a month like my third tip, then you can keep the late fees. I'm not saying be dishonest to the owner, but if you have to do the work, you should get the late fees. The payment to the owner will be on time every single month, you've taken the burden of chasing money, you should get the late fees. Make sure you tell him this upfront. I'm sure he would not mind. It's a way to make a little extra cash and gives you a bargaining tool. (Pay me today, Psycho Bob and I'll cut the late fees in half.)

There's a couple more I can think of, but now my head hurts from typing this much, i'm going to get a beer....