RE: Rental real estate management services

From: Rick.Schafer@bdk.com
Subject: RE: Rental real estate management services
Date: Fri, 10 Jul 1998 15:22:55 -0400

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>>>>>>>>>>>>>>>>>>>
Date: Wed, 08 Jul 1998 10:57:33 -0700
From: Mike Broadhurst <specpub@annex.com>
Subject: Rental real estate management services

Hello all:

I own a Los Angeles-area townhome that I've rented out for about 18 months.
It will soon be vacant again. Having made a number of stupid landlording
mistakes, I'm thinking about contracting with a property management company
to handle the tenant screening, leasing, rent collection, etc. I understand
some firms charge a percentage of the monthly rent and others have a
one-time fee. Does this sound right? 

Does anyone on the list have experience with such firms that he or she
would be willing to share? Are there common pitfalls to avoid? Are such
firms liable for dealing with tenants (that they find) who subsequently
must be evicted? Any management firms in the LA-San Fernando Valley area
that someone might recommend?   
[> ]  <<<<<<<<<<<<<<<<<<< 
[> ]  Mike,

I own a number of multi-family homes in Mass.  I have used a property mgmt
company once to help get rid of a bad tenant, and I have 3 different rental
agencies that I use to find tenants.

First:  you can use a rental agent (property mgmt firms also can provide just
this service - if they won't, call another one).  Here at least, they will
charge you 1 month rent to place a tenant.  This should include advertising,
showing, screening, lease-up w/all required forms, collection of $ including
whatever you are getting such as 1st, last, security, lock charge.  I find it's
a great bargain because I work full time at a 'real' job and with all the
no-shows etc. the showing & screening is a real time hog.  Plus the agents I use
have been better at me at weeding out the problem applicants.  The nice thing
too is it feels like it's a free service because the tenant pays a month up
front and the agent keeps it for his fee.  So there's no out-of-pocket -- I just
wait till next month to actually collect rent.

Second, a property mgmt company should have a variety of services & let you pick
& choose how much you want to use.  One I have used charges (for a small multi)
7% of collected rent or $75/mo minimum.  Another I know takes 10%.  For this
they collect the rent, visit periodically to make sure things are kosher, get
the problem calls from the tenants.  They should offer a full line of
servicemen, like plumbers, carpenters, electricians, laborers, etc.  but you
should have the option of handling things yourself if you want.  From my
experience THEY ARE EXPENSIVE (you pay a la carte for every service/incident)
but experienced & pretty thorough.  I'm sure every one is different just like
any other service.  But I'm betting this will suck all the profit out of your
one unit.

Next, do you belong to a property owners association?  If not, find one & join! 
It is the best thing I ever did.  I think you can find one via links from our
Mass Rental Housing Assoc at 

http://www.massrha.com/

If not, poke around until you find it.  We get limited free legal assistance, a
political voice, meetings monthly with presentations from Housing Court, CPA's,
lawyers, big time property owners, etc.  I am sure one exists there & they can
really help.  Chances are some prop mgmt rep's and rental agents are members.

Finally, post your question on the usenet at

misc.invest.real-estate

You can get some more advice there.

Good luck!

Rick Schafer

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