On site property manager - Landlord Forum thread

On site property manager by Anonymous on July 11, 2012 @15:15

Considering a purchase of three rental units, one of which is empty but will be occupied by a property manager/handyman of my own choosing.

All the rents are $885/mo. Property manager will have regular hours 8 hrs/day plus lunch and breaks, plus weekend and after hour emergency rotating availability as well. I'm the back up handyman for the guy's days off and rotating weekends and after hours.

How much reduced rent should I charge the property manager/handyman for rent?

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Re: On site property manager by The Dude (MN) on July 11, 2012 @15:27	[ Reply ]

Depends... how much are you going to pay him? Is he hourly or salaried? Are you paying him less because he's living there and he's getting a discount? If he lived off-site paying his own rent, would you be paying him more? Is he being paid for his time on call? Even at minimum wage, he's making $1,160 a month pre-tax. Based on your rent, if you gave it to him for free, he'd be costing you an additional $5.53 an hour, and that's just for the 160 hours a month he's scheduled to work, not counting the weekend and after hour on call schedules. It all depends on what you're planning on paying him, what you're doing with his on call time he's required to put in and what the going rate for a handyman in your area is.

Re: On site property manager by Micah on July 11, 2012 @16:54	[ Reply ]

Do you really need someone for 3 units or will he be working on a lot of you other properties? I have a 4 unit and spend about 4 hours a year actually doing handyman stuff outside of my own unit...

Re: On site property manager by Anonymous on July 11, 2012 @17:24	[ Reply ]

My understanding is that onsites are given reduced/free rent in exchange for an equal portion of salary or expected hourly pay. This is to reduce the tax liability for the owner. The onsite would readily accept as that person would need to pay for rent somewhere anyway. Another positive for the owner is that you have someone visible and close to the action. I could have this all wrong but that's my interpretation.