Hello Everyone... Hope all is well... Haven't been here in a while... I was recently approached by an Investor wanting to do some Property Management. Don't have much in the way of details right now, but this is relatively new territory for me. I have managed my own property for years, but have not done it through my Brokerage, so this is sort of new to me. Here are some ?'s that I have:

1. How do I proceed with this Investor (He owns a lot of property) ... He found out about me through a Mutual R.E. Atty.

2. How do you folks run your Management Operations?

3. Do you enjoy it? ... Is it worth it?

4. What do you charge?

5. What would you change in your Operation to make it better?

... and finally

6. What are the pitfalls / negatives of your Management Operation... In other words... What should I look out for?

Thanks all for your time...

TrueVisionary...

Look at your E and O policy rider to make sure property management is covered.

Usually each year for your E and O they ask for transaction types closed and volume and totals.

If you are going to do property management you would be smart to set up a seperate 2nd brokerage company with it's own E and O policy. This way if you get sued you just shut down the PM company without affecting your main one.

E and O for PM is expensive as they assign higher risk to underwrite the policy as history shows high chances of litigation and payouts (claims).

Property management is a PITA and can be a full time job for minimal return and keeping extensive records.Personally I would turn it down as I hate PM and like regular sales. I still write rental agreements occasionally but that is totally different than ongoing taking of checks,tenant calls,record keeping,etc.

Thanks Super Realtor... We meet this weekend. I'll come back and give more details after we meet. Good idea on setting up a second Brokerage... Someone mentioned that to me before... Sweeeeeeet. I'll post again once I know more about what he wants to do.

TrueVisionary...

Ok... we met and I like his ideas... Set up a 2nd Brokerage to do PM out of... Thanks again Super for sharing your knowledge and experience...

TrueVisionary

True, will you be receiving sufficient compensation to make it worth your while? After all, property management is fairly time consuming. Let us know how it turns out.