Agent Training Resources

So I bet you're wondering how much money can I make in this property management business? And that's important to understand. I call this the get rich, slow business. Real estate is kind of a get rich quick business. I can get a real estate license, network with my friends down at the club, and help somebody buy a two million dollar property, help somebody sell a two million dollar property. You can make 40, 50, 60, 70 thousand dollars. You and I both know not every realtor does that. There are too many realtors right now chasing too few deals. So in the property management business, I would say we're in the nickel business, not the dollar business. So we take over a property. We give you a property to manage and let's say it's two thousand dollars a month. The management fee is one hundred and fifteen dollars. So you're like, well, that's not great. Well, you're earning 65 percent of that, so that's going to be seventy dollars. But it adds up. It adds up. So yes, one property per month is seventy dollars. But if you're managing 100 properties, well that could be seven or eight or nine thousand dollars gross. Our top branch manager, he's been with us now five years - he manages over a hundred properties and we cut a check every month for six or seven thousand dollars a month. But there are other income opportunities when it comes to property management, other sources of revenue. For example, when we put a tenant in, we charge an administration fee, when we go to renewal, we charge him a renewal fee. The biggest fee our agents like is a tenant acquisition fee. So we have a property that is vacant or becomes vacant, we go to the owner, well, we'll place a tenant in here but we're going to charge you. So typically on a two thousand dollar a month rental, we are going to charge that owner seven or eight hundred dollars. OK, well, and we offer a bunch of programs here, owner and tenant programs, which we will not get into, but if you just sell a few of those programs, eviction protection, liability insurance, pet protection, security deposit guarantee, you can earn a hundred percent of that leasing fee. So now you're keeping eight hundred. If you're managing a hundred properties, about 25 percent of your properties are going to come up for renewal every year. Tenants leave. Well, do the math. That's twenty thousand dollars in additional revenue per year, almost two thousand dollars a month. So there are fees we charge tenants. For example, the tenant is late on their rent, and you've got to post a three-day notice to quit or pay rent. You keep 20 bucks. So all these little fees add up - the tenant acquisition, the tenant fees we charge, of course, the leasing fee on top of the base management fee means that with just 50 or 60 doors, you're going to be making two, three, or four thousand dollars a month. So even though we're in the nickel business, they add up to dollars.