REALTORS® Should Consider Property Management

by Jessica Hickok on February 5, 2012

Usually my posts are geared to Landlords and Tenants, however, I’d like to change it up and have a heart-to-heart chat with real estate agents about offering property management services.  Wait a minute… I don’t know why I make such absolute statements like that, my posts are also geared to fashionistas who love shoes and those who have the suga’.  Nonetheless, I digress.

I have been a REALTOR® for 12 years now listing and selling conventional residential properties, in addition to managing rentals here in Springfield, Missouri.  Often my colleagues ask me a question along the lines of “Why in the world do you do that? There is no money in property management.”  I beg to differ as property management has worked very well to my advantage as a REALTOR®.

  1. It has been that steady stream of income (the monthly management fees) for when sales have hit a lull and income has not been consistent.
  2. I (together with my business partner which is what I mean when I say the word “I”) have built a strong base of repeat investors who have used our real estate services to find and purchase good deals as rental properties.  Usually, they want the good rental investment, but don’t want to deal with management of the Tenants.
  3. I have put together an in-house maintenance team, which consists of a mixture of employees and sub-contractors that can do a complete maintenance overhaul on a home that could easily rival that of an Extreme Home Makeover team (okay… almost.) I give my crew a guaranteed 40 hours Monday-Friday and pay them a salary.  Then I bill the hours, and my time to coordinate the crew, to the investor/owner.  This results in receiving income that is nice to have when my real estate commission checks are less frequent.
  4. I get a lot of good credit card points for when we purchase supplies for home repairs (that we bill out to our investors/owners).  These points have sent me and the hubs on a cruise or two when I’ve desperately needed a vacation.
  5. I create my “farm area” with my 600+ Tenants who eventually turn out to be homebuyers or at least refer me to their contacts who are buying homes.  The trick to this is to let your Tenants know that you are a REALTOR® who is not just managing property, but also selling houses, because they often don’t know how the process works.

So before you start judging me, thinking “I could never do property management” then let me say “yeah, you’re right, you could never do that.” <insert sarcasm here>

Think of me when I’m on my next cruise. :)

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Choose Your Roommates Wisely (Part 2)

by Jessica Hickok on February 1, 2012

Don’t worry, you didn’t miss “Choose Your Roommates Wisely (Part 1)” – it was written over on Zillow’s blog here.  In a spinoff post from the original that I wrote for Zillow, I have added this second part about choosing your roommate wisely.  Call it a series with sarcasm.

Roommate drama can be the biggest pain in the backside, especially when you’re their landlord/property manager and they drag you into the middle of it.  I certainly get my fair share of it usually around the first week of the month, also known as “rent week.”  Typically it happens when one roommate has paid their portion of the rent and the other has not.  I get a lot of requests from the “good tenant” to contact their “deadbeat roommate” and see when they will pay.  Here’s my answer to that… “um, no.”  Plain and simple.  Because here’s how I see it, and how our office policy goes–

1) I look at the rent payment as a whole.  Although I do mark where each payment came from, in all reality I don’t care who’s paid what and when.  I don’t decide how the tenants are to divide up the rent and who should pay what portions and when.  That’s your deal, not mine. Therefore if the rent is not paid in full, you are all late in my mind.

2) I don’t get involved in domestic disputes.  Whether they are between a boyfriend/girlfriend, husband/wife, or just two people who were considered besties just before they decided to rent a place together.  If your roomie really did steal something from your room, then call the police, not me.  But the domestic disputes do give me good blogging content, so keep ‘em coming. :)

3) I’m not your Mom.  I have two kids of my own that have their disputes over whose turn it is to play the Xbox 360 that I have to referee.  Most of the time, my kids have three times the maturity that some of my tenants have when it comes to handling their disputes.  I am their Mother, not yours, so you kids go work it out and let Mommy have some alone time! *angry eyes*

4) I don’t get paid enough for this.  Granted, I make a good living at what I do, but I don’t get paid near enough for hearing out Tenant fights.  Therefore, when tenants call wanting me to take so-and-so off the lease agreement or change something in the lease, I say “no problem” and charge them a $150 Lease Change Fee.  Or they have the option of leaving things like they are and working it out.  Like I said, I don’t get paid enough to hear the complaining and try to fix the problems, so I am going to charge you for it. Call your shrink to hear you out about how your roommate is such a loser.  They are probably cheaper than I am.

5) You should’ve chosen your roommates wisely.  Use your head, if there is a chance you won’t get a long with your new BFF, then maybe you should consider keeping them as your bestie and not your roommate.  Find someone you do get along with or find a less expensive place to rent and live alone.  Because maybe, just maybe, you’re the problem– not them.

Just saying. </random rant>

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Lining Out Sub-Contractors (Or Keeping Them In Line)

January 21, 2012

My property management company hires a lot of sub-contractors.  If there is a job that needs to be done outside of general maintenance such as electrical, roofing or HVAC work, then I have to sub-contract it out.  Our in-house maintenance crew is awesome, but sometimes the job is just out of their scope. However, there [...]

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Chilled About The Fire

January 13, 2012

In my almost 12 years of managing rental property, I’ve had to only have to deal with one major house fire, one molitov cocktail and one almost serious fire just today.  I consider myself fortunate, but my hard work and obsession with checklists is paying off.  More and more of our tenants are taking good [...]

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I’d Still Like To Call Myself A Blogger For 2011

December 31, 2011

Let’s just say that blogging on this personal site has been on the back burner for 2011.  But considering that it’s the last day of the year, I might as well post, just so that I can continue to call myself a blogger.  Granted, 19 blog posts in one year hardly qualifies me for “Blogger” [...]

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Boring Real Estate Listing Videos

November 16, 2011

Now this is how real estate listing videos should be done.  It is not boring and there is no “call me for all your real estate needs” REALTOR blah blah blahing their way all the features of the home.  I only wish I could take credit for this idea and say that I did this.  [...]

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Quit It With The Phone Books Already

August 10, 2011

There are a couple of ways to rattle my cage and it seems like it is always Ma Bell that does it.  Granted, they no longer call it Southwestern Bell, Bell South, SBC or whatever the phone company has re-invented themselves as these days and I probably couldn’t care less.  The hubs and I cut [...]

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Red Listed and Red Listing

August 7, 2011

I’ve had some projects bouncing around for awhile now and one of them is finally getting all of the loose ends tied down as I mentioned in my previous post.  It’s landlordredlist.com.  Ironically, the “red” part of it has nothing to do with my red soled shoe obsession.  The red-listing had started a long time [...]

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Getting My Feet Wet

August 4, 2011

I am embracing some new things/changes with my daily grind.  Not sure what all it entails yet, but I need to tie up some loose ends on outstanding projects and really make a break on some new ones that are brewing in my head.  It’s a stretch-and-grow thing for me as there may be a [...]

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Third Time’s A Charm

August 3, 2011

I’m so excited! The National Association of REALTORS® has selected me (and The Donald) to speak at their annual conference and expo again in 2011! This is the third year in a row that we will speak on Property Management and Residential Real Estate Investments at the conference. The first year 2009, in San Diego, [...]

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