Property Management Companies

studentDan

HI Guys,

I am fed up of being over charged by my management company. And from what I can see they do nothing. Apart from cut the Grass...
Can you tell me how would I go about setting up a management company & the legal side to it too.

I think I could easily do the same work as them for half the price. Has anyone here ever tried this before. All advice welcome and appreciated.

Thanks:)

jd

I assume you own the property?
Have you gone to the management company agms (you would be a member)?

stepbar

Just one thing... Who pays for insurance of the apt block?

ircoha

studentDan wrote:

HI Guys,

I am fed up of being over charged by my management company. And from what I can see they do nothing. Apart from cut the Grass...
Can you tell me how would I go about setting up a management company & the legal side to it too.

I think I could easily do the same work as them for half the price. Has anyone here ever tried this before. All advice welcome and appreciated.

Thanks:)

They do nothing and you will do the same for half price

It might be no harm to list here all the things they are supposed to do and then see how u, on your own will do all of these things. One thing u might price up first Is PI insurance.

shoegirl

studentDan wrote:

HI Guys,

I am fed up of being over charged by my management company. And from what I can see they do nothing. Apart from cut the Grass...
Can you tell me how would I go about setting up a management company & the legal side to it too.

I think I could easily do the same work as them for half the price. Has anyone here ever tried this before. All advice welcome and appreciated.

Thanks:)

A friend of mine started a management company recently. He's a painter/decorator with about 30 years experience in the trade. He is making about 150k a year out of it, however, he does work about a 60 hour week.

It all depends on how much management you intend to do. He hired former collegaues who are skilled electricians, plumbers etc, and they actually MANAGE the maintenance of the apartment blocks they manage. They don't just cut the grass, they fix plumbing issues, electricity etc. If you are willing to go as far as he has you could make a huge amount as I'm sure lots of landlords would only be too delighted if they can get somebody to look after a whole swathe of places. He does both basic managing of an entire block plus individual apartments for investors.

The trouble with management companies is that a lot of them do very little - but if you are willing to go into competition and work hard I would guess that you could do well out of it. Part of the problem in the building trade at the moment is that there is a lot of complacency and a lot of guys want money for nothing or at best easy work. This isn't going to pay in the long term as there is going to be more competition in future and anybody who treats their customers like sh** now will be abandoned by those customers in future.

MG

In a previous existance, I got lumbered with running a property management company to fill in for someone. From memory insurance accounts for more than half of the expense of this company. There may also be common area lighting, accounting & compliance,alarm maintenance & security etc. They will also try to build up a fund to cover painting every souple of years. The only benefit you will probably see is the grass cutting, an occasional repair and a lick of paint every few years. But this particular management company struggled to break even so it wasn't fleecing anyone.- it's just that most of it's costs are invisible. It also depends on how many units there are so costs can be spread.

ircoha

MG wrote:

In a previous existance, I got lumbered with running a property management company to fill in for someone. From memory insurance accounts for more than half of the expense of this company. There may also be common area lighting, accounting & compliance, health and safety, alarm maintenance & security etc. They will also try to build up a fund to cover painting every souple of years. The only benefit you will probably see is the grass cutting, an occasional repair and a lick of paint every few years. But this particular management company struggled to break even so it wasn't fleecing anyone.- it's just that most of it's costs are invisible. It also depends on how many units there are so costs can be spread.

Well said,
there is also dealing with the local planners and rogue owners/tenants/illegal dumping etc:)

rondjon

I've a feeling people here are getting mixed up between Management Companies, Management Agents, and possibly Property Management Companies.

A management company oversees an apartment complex/development and is made up of the owners, or a representative selection.

A management agent is employed by the management company to do all the work around the development.

I think that a management agent and property management company can be viewed as doing the same thing.

Can the OP clarify what he actually wants to do? He can't set up a new management company for where he lives - well, he could if he got the existing one to dissolve itself.

He could however, set up a new management agent, and then seek to have his new company appointed to management the development where he lives by the management company where he lives.