I assume the answer is either by an on-site resident manager or by an property management company. I am thinking about buying a piece of land for boat and RV storage but I’m unsure as how to best manage the day to day operations. I’ve read that property management companies will manage the property for a percentage of the effective gross income, but what does that management provide? On-site manager? Full-time? Accounts receivable and accounting?
Thanks for your help!
Answer by Real Estate CFO
Sorry for a non-committal answer, but the management company will provide whatever you need them to. Do you need:
Security: someone on-site 24/7 to allow access, access only during certain hours, or will you provide self-service automated access to the facility via codes or electronic means that does not require monitoring?
Leasing: how will people rent storage space? On-site, on-line only, call you, call someone else? Who contacts them and negotiates lease renewals or other changes?
Rent payments: Depends on whether you have on-site staff or not, but the manager will typically handle accounts receivable, cash collections, pay operating expenses, and perform general accounting and budgeting.
Operations: do you want the manager to negotiate and manage maintenance contracts, procure insurance, pay real estate taxes, etc?
Obviously the fee structure will depend on the amount of duties you are asking them to take on.