For people thinking about getting into residential (or commercial) real estate investing, there is an option of how you want to manage your investment.
On the one hand, you can deal with all of the "field operations" issues yourself. This means everything from running FOR RENT ads to dealing with evictions and everything in the middle.
If that doesn't sound like your cup of tea, and for some it is not, you can consider utilizing the services of a professional property manager. Should you decide to go this route in Ohio, the first thing to understand is that, unless you are making the manager an employee, you must utilize a licensed real estate brokerage. This probably isn't a bad idea anyway since professional property managers do this for a living and Cousin Earl doesn't.
There are a couple of costs when hiring a manager. Depending on who you hire, you will pay a management fee which is a percentage of all money collected by the manager. This can include base rent, late fees and utilities. Each company has their own fee structure and I would be happy to share mine, just call. Can't post it here due to Federal Regulations. Keeping legal is important !!
Second, you may be charged for lease renewals and/or new leases that the manager secures for you. This is not usually too high of a number.
Third, there may be a charge for managing an eviction. This is also a fairly nominal fee for the manager and there may be an attorney fee in addition. Attorney fees for eviction can be $250 and up, but they get it done right. Your manager can also steer you to attorneys that have this down to a science.
Another cost may be the advertising of your properties. Costs here vary, but are usually just a pass through expense for the manager and you will have them if you self manage too.
Lastly will be any maintenance expenses for materials and contractors. Some managers have staff members that can do much of the maintenance and some contract all of the work out. Subcontractors will bill by the job, while staff maintenance guys are charged to the owner at anywhere from $15 - $35 per hour, plus materials.
These costs may not apply in all areas, but seem to be fairly common in Columbus, OH.
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