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Discussion Starter · #1 ·
I was recently approached my a long time broker client to start managing some of their properties that they purchased starting with a multi unit complex.

Now I've done many property management things like being handy man for my properties for brokers of mine but I've never taken over as a official property management company for certain properties. They asked me to send them a proposal and a sample price list so I wanted to reach out to anyone that has done it before on what I should do and what all I would be expected to handle and how and what items should I include in a price list?


Thank you
 

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Depends on your location. Some states require you to be a licensed broker before you can "officially" manage property.
Some may bill a percentage for each unit they rent, ie 50% of the deposit, 10% of rent for 12 months, etc. You can bill at a flat rate per month, per hour, per service. Types of property matter too. High end condos or section 8...probably need a little more info.
 

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Start high when negotiating.

Example 1: 10% of all rents + materials/labor on "turns" or "make ready"

Just keep in mind, that percentage that you collect as a management fee does not include any materials/labor to prep and make ready any units. Moreover, it does not include any contracted services/repairs. Particularly any capital expenses.

Is he looking for a maintenance contract? Or a true PM contract? They are very different. With a PM contract you will be responsible for coordinating EVERYTHING....all the way down to meeting the "bug" man to let him come in and spray.
 
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