How much should I charge my Dad to manage his 4 rental properties?

Question

They are four houses, two in Oakland CA, and two in San Francisco CA.
Lower middle class neighborhoods.
All rented.
Plus, my Dad has given me plenty of money over the years, so I owe him.
How much should he pay me a month? He's offering me a hundred dollars a month. Is that too little?
Don't forget this is California - Everything's more expensive here.

Answer 1

You need a real estate license to "manage" property in California unless you have an ownership interest in the property or are a direct employee of the owner.

That said, depends on what he want you to do. Collect rents? Make repairs? Meet the repair people?

Management rates for the above services on single family homes typically run10-15% of the gross for the services listed above, excluding the actual repairs. That cost is in addition to the management fee in Silicon Valley.

Don't forget that you may be dealing with rent control in SF.

If you owe dad, why not just let him kick you down some money each month based on what you do for him?

If you want to set a straight fee and become his official "agent" make sure you get him to name you as an additional insured on his property liability insurance policy so that you are covered in the event a tenant, vendor or other person tries to sue you in your capacity as manager.

One way to determine a fair fee would be to take your minimum hourly rate of pay and multiply it by the amount of time you expect to be running around or handling phone calls related to the properties. That could be your monthly base, with an hourly rate added on when you are renovating or have turn over.

Just a few thoughts, I hope they are helpful.

Answer 2

The normal full-service property management fee is 10% of the gross rents received. That's a national average, CA may be 1 or 2 points higher. He should pay you close to that amount. If you have a debt with him, that's a separate issue. You might want to work out an agreement so that he pays you the 10% and then deducts a portion against what you owe him. Once that's paid off, you would then get the full 10%.

Unless he's got 4 places in the Bay Area that only rent for $250 each a month (I'll take one, by the way!) then $100 a month is WAY too low. If they're each renting for $1,000 a month, $400 a month would be fair and reasonable.

Keep in mind that a property manager is on-call 24/7, 365 days a year. If a water heater blows on Christmas Eve, it will be up to YOU to see that it's quickly taken care of -- like before the turkey is done on Christmas Day!

Answer 3

Typical management rates are three to six percent of the rent amount. So add up the rent and get three percent of that. That should come out to considerably more than 100 bucks. Then again it is your dad. I would just manage it on the side and do a good job and then when the old man goes, guess who gets the properties.

Good luck

Answer 4

You can do it your self or you'll be able to rent a leadership organization - they're going to maintain all of the main points for a cost. In such a lot states an person are not able to do credit score and historical past assessments -this has been a main issue for plenty of landlords- in such a lot cities there are corporations a good way to do this for you for a cost of path. It possibly a truly property workplace you'll be able to ask on the Board of Realtors. You have got to put it up for sale the situation, print out a software with all of the understanding you want (appear underneath truly property varieties on-line) - you desire to appear for any individual with an revenue same to 3 instances the hire so if hire is $500 they have got to make $1500 to preserve that situation. If you are not able to investigate thier credit score you'll be able to ask for and investigate out references- historical landlords will have a credit score document (character will have got to good enough them giving the understanding to you). Your pleasant supply of understanding is from a ex-landlord. They will inform you if the character paid on time, stored the situation up, left early, was once evicted or some thing else you can also have got to recognize( suspected drug use, immigration reputation and so forth). When you uncover any individual pass over the hire utterly after which signal (either one of you) and supply the character the keys - such a lot landlords ask for first months hire and deposit (will also be 2 months). This cash have to be installed a separate financial institution account so to hold the deposit cash separated and comfortable.(i imply the deposit cash no longer the primary months hire).

Answer 5

Usually property management fees are a percentage of what is income received off the property, anywhere between 7 - 10% of the income.
Is it worth it, Are you the one they call 24 hours a day to take care of problems, or the rent collector, and if they don't pay who has to file the papers, knock on the doors, keep the receipts, etc.
It is a lot of work. $100 @ month what will you be doing?

Answer 6

If he would hire the company,they will charge him 10%-15% from rental gross income, it's include: renting the property, collect the rent and take care of all the complains. So it's depend what you have to do, if you have to do some cleaning or maintenance, than it's up to only for how much you will do this, considering that you helping your father. Good luck!

Answer 7

Remind him that you will accept the low offer since you still have not re-paid him.

Don't be greedy because after he dies, all or some of his property will come your way anyway, ESPECIALLY since he is trusting & PREPARING you to know the ins & outs of his properties.

Keep ya mouth shut, accept the money, learn as much as you can - from him, and GOoD things will come your way.

(Otherwise, search online for Occupational Outlook to find the averaged amount of money people earn by job positions.)
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Answer 8

I would say 4-6% of gross rents collected.

its important you not overcharge- but its important you get paid fairly so you feel that you are doing it as an obligation for which you get paid and not merely as a "favor".

$100 each? how much is the monthly gross?

Answer 9

I think a $100 is fear. He is your Dad! and He was generous with you before. Now is your turn.