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If tenant doesn't pay PM doesn't get paid. Make it clear that they only get paid off collected rent and not expected rent.
If issue with unit typically you set a threshold for notification. I.e. under 500 they handle over 500 they flag for you and get approval. Threshold is customizable
Typically they don't screen old tenants but will want proof they don't suck (i.e. pay/don't complain all the time/w.e).
Typically PMs are paid 10% of col. Rents + 1 month rent on each tenant placed.
Thank you! So basically they pay $500 out of pocket in that example? What is the threshold based upon and what is a good threshold?
Also if things get heated between tenant and PM for not paying rent and then tenant damages the property, how do i make sure im covered?
Subject Expert
If tenant isn’t paying rent, hopefully your PM is processing that in accordance with state laws and not just deferring to you. The whole point is to handle everything with little to no correspondence with you as the owner.
Repairs can be paid out of the shared account (assuming you have a maintenance and/or CapEx holdback from what gets distributed to you, which you should). Bigger expenses might be passed thru to you.
Screening an existing tenant is uncommon, up until it’s time for renewal. Generally speaking, you get what you get with an inherited tenant.
Every PM is different. Some don't collect rent and only address tentant on issue, let's say after 15 days late. It's up to you to understand what PM's guide posts are. Ours screens tenants, collects rent, coordinates repairs, which they deduct from our rental income (sometime over more than one month). Some PM's make you pay up front though. Mine also only gets paid when propery is rented. The have strict screening and high expectations for property conditions.
Dig deep to now what you're getting onto. Interview at least 3.