OfflineI just closed my first property (REO)! The 2 BR, 1 bath ranch that I talked the bank down in price to $35,000 is finally mine. I'm now trying to get the electric turned on, which I'm finding out is no easy task when the property has been vacant for 1 year. The bank paid for my electrical inspection plus paid for all the water line leaks that were found except one (all of the bank funds alloted were used). Once I have the electric on, the plumber is coming back to fix the last leak, I just scheduled the house to be measured for new carpeting today which just leaves a lot of scrubbing and painting plus yard clean-up. Due to the time of year I'm planning on using a rental management company to help me find renters. They will advertise the property for me, find renters, do background checks, etc. for a fee of 1 months rent. Has anyone else done this?? Any input would be appreciated!! Thank you everyone!
Donna
Finally! I closed on my first property!!
Posted on: Fri, 10/02/2009 - 21:55
Finally! I closed on my first property!!
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I don't have any suggestions for you about the rental management company and their fee. It will be interesting to hear what others have to say. Just wanted to congratulate you on your first REO property.
Lea
SPR Property Solutions, LLC
Great job Donna! Can't wait 2 hear about deal#2. I'm next.
God bless,
Serena
Hi Donna,
Yes, I have used a property management for all my properties. Will you be using them to manage your properties after you have the tenants in? My property management does the "marketing" (advertising, background, credit & criminal checks BUT I pay for the ads). They charge me a monthly fee (a percentage) and they take care of EVERYTHING! Renting it out, rent collections, notices & light maintainance. They are also the ones who are called when something goes wrong and needs to be fixed.
As for finding renters mine charges a 10% marketing fee of the total amount collected ie: deposit, 1st months rent & any pet fee. For example if my rent is to be $1000 and the deposit the same it would cost me $200 for them to market the property plus I pay for the ads in the paper (we also use Craigs list for free).
Back when I was first looking for a property management the 1st month for the "marketing" (advertising, background, credit & criminal reports) were to be done for one months rent like yours. I decided to go with a different company so we do it a bit differently. Your's is not unusual though so if you are happy with them, go for it! Don't be afraid to negotiate the contract before signing to make sure you are happy though:) Good luck!
Sincerely,
Angie
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
I have heard of 10% like Angie said. That is what mostly everyone charges I believe...
...used a rental company to find an apartment three years ago. Their fee, they told me, was the first month's rent. I made the check out to them and then the next month and afterwards made the check out to the man who actually owned and managed the property. He just used them to help him find tenants. (this was in Chicago).
Nancy
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http://www.deangraziosi.com/real-estate-forums/investing-journals/18857/...
I contacted a local company that manages properties and was told that for a fee of 1 months rent they would advertise in the paper and on the web, find a renter for me, do the background check, etc., collect deposit and first months rent. Since the property is close to my home the managment company said that it would benefit me if I took over once a renter was in place. Very similar to what Nancy stated. Thank you everyone for your advice!
Donna
Congrats on your first deal. You sure showed them who is boss, what a way to go. Well now that you have began, the only way you are heading is up, up right to your next deal. God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
Hi Angie!
I think your poat here is really valuable.
Just a suggestion: you should start a new forum topic with an obvious title. ("Property Management Fees" for exapmle)
As useful as your info. is here, it will be missd in the middle of this topic by many members who could use it.
Just a thought.
Angela
Thank you for your advice. I'm going to start a new topic to get more info from everyone. I'm so excited about this little place but worried about trying to find renters on my own at this time of year.
Donna
Way to go girl! Sounds like you are on your wayto the top..
Lisa
For the past week now I have been trying to get the electric turned on. An inspection was done a month ago...before we had a contract on the property and was paid for by the bank. The contractor stated that he sent the paperwork to the electric company, the electric company had no record of it. To make a long story short, I just found out that the number that the electrician had was for a different electric company. Paperwork was faxed to the correct number yesterday. Keep you fingers crossed...hopefully I'll have the electric on early next week!!
Thank you everyone for your support and advice. I'm stil learning.
Donna
Donna, a big congrats on your first deal. How does it feel to be a real estate investor?? Pretty good I bet. Much continued success to you.....Jan
Way to go Donna! I bet that feels great to have the first deal done. Good luck on all your future deals!
Michel
Great work on your first deal. Congratulations and keep up the good work.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Hi Donna,
Keep going! Don't stop! Stumbling blocks will come, but as Dean so well stated," Think about the solutions, not problems. So, happy for you!
"No is never an option; it is Yes and AMen."
Nice job on the first deal. That first deal is the hardest one. From what I have been reading on this site and dealing with personally it is extremely hard to get past the self doubt. The book and everybody on this site are extremely encourging. I'm working on the foundtion of my strategy to get started buying houses. I'm doing my homework on all these differant subjects, LLC, Financing, finding a real estate agent etc. tweeking some scripts for sellers, buyers and realtors. Thanks for all the advice from everybody. Lance
Good work on your first deal! Take Angie's advice as far as using a property management Co. Personally, I wouldn't pay someone else to do the advertising, only if you need more help in that area. In most cases a Management Co. already has a list of renters, or would know where to get those renters so it shouldn't take them a month to fill your units up. I would ask them if they have renters on a waiting list, that will save you the trouble of paying for advertising, and always use all the free sources out there to get your word across. Keep moving ion that same path, your on the right track.
Everyone Can Make A Difference!
John A.