HIRING AND MANAGING PROPERTY MANAGERS BRUCE KELLOGG
Some investors see a challenge in grinding the manager on their pay. This is not an area to push the limits. Managers
who feel wellpaid will manage better. All it takes is one $6,000 damaged unit to wipe out any perceived savings. So, pay
your managers well.
Another thing is to remember that the manager works for you. Some managers are firm with their clients about what they
will and won’t do. (They try to treat you like a tenant!) When they try this, be polite but assertive. THEY WORK FOR YOU!
Talk to your manager about inspecting your unit(s) quarterly. They need to get inside, ask about needed repairs, and
assess how the unit is being treated. You don’t want a $6,000 rehab in two years because the tenant paid well but ran the
place down.
If possible, try to visit the manager from time to time. Drive by the property first. Try to find a scraggly lawn, broken window,
inoperable car, or something to ask the manager about when you get to their office. This “surprise audit” will help keep
them from going slack handling your account. Remember, they work for you, and you are paying them well.
A final issue is the report(s) you will receive monthly. Large management companies have professional reports which load
easily into income taxpreparation software. Parttime managers usually do not. So, you will need to set up an EXCEL
spreadsheet or purchase your own software and load it monthly. Do not wait for “tax time” for this.
GOOD LUCK!
Bruce Kellogg
Bruce Kellogg has been a Realtor® and investor for 35 years. He has transacted about 500
properties for clients, and about 300 properties for himself in 12 California counties. These
include 14 units, 5+ apartments, offices, mixeduse buildings, land, lots, mobile homes, cabins,
and churches. He is available for listing, selling, consulting, mentoring, and partnering. Reach
him at [email protected], or (408) 4890131.