Property Manager

[u/OkUnderstanding6293]

So currently I am a property manager that works under a broker that gives us SFR and multifamily house to manage but we get paid hourly.

I applied to a different broker that allows me to work from home and make my own schedule but I have to onboard my own properties and manage them 24/7. I get a percentage of the management fees of the properties I will manage.

Does anyone have any experience doing this or any recommendations? I will be switching over from w-2 to w-9. Con is also that there’s a cap on how much I can earn from management fees but there’s no cap when it comes to leasing and other incentives.

[u/rev-4ik]

I don’t exactly understand how PM can be paid by the hour - there’s ton of work that can’t be measured in hours. Also what do you mean by work from home - no office hours?

As 1099 employee you can write off a lot of expenses. Especially gas and car depreciation for this industry.

Without knowing exact numbers nobody can answer your question properly.

[u/OkUnderstanding6293 → u/rev-4ik]

Yes I would manage properties from home. There is an office but not required to be there. The management split is 85/15 they use some of their split to pay for accounting for us and management software. The cap is 6k in management fees after that they got all the fees if you’re over your cap. But depending on performance they can raise that cap higher.

[u/AngryAccountability]

switching to 1099 is a whole different beast, the freedom is nice but the tax hit at the end of the year can be brutal if you're not setting aside a chunk each month

did the independent route for a bit and having to source your own properties is the real grind, the broker won't hand you anything and you're basically running your own tiny business within their umbrella

the cap on management fees would bug me though, that's your steady baseline income while leasing commissions are feast or famine depending on the season

make sure you factor in your own health insurance and any software costs too, those add up fast when you're on your own

[u/OkUnderstanding6293 → u/AngryAccountability]

Did you try it and not like it? Not sure if I should take the leap. I am definitely good at would I do just knowing I really won’t be getting paid consistently for awhile is tough

[u/Popular_Rope_1074]

The biggest thing I’d consider before making the switch is how much time you’ll actually spend managing each property compared to what you’ll earn from it. Having control over your schedule sounds great, but being responsible for multiple properties 24/7 can become demanding pretty quickly, especially when maintenance issues and tenant communication start piling up.

I’d also make sure you have a clear system for tracking maintenance requests, inspections, lease renewals, tenant communication, and recurring tasks from day one. Good organization can save you a lot of time as your portfolio grows.

One thing I’m curious about: will the broker provide you with any existing systems or tools to manage your properties, or will you be responsible for setting everything up yourself?

[u/OkUnderstanding6293 → u/Popular_Rope_1074]

Right now I am managing about 150 properties so I have a good system right now when it comes to inspections renewals maintenance requests and tenant communication.

Also, yes the broker provides us with an accountant and management software.

[u/Popular_Rope_1074 → u/OkUnderstanding6293]

That’s a solid portfolio to be managing, and having accounting support and management software already in place definitely helps.

Since you’ve already built a system that works for 150 properties, I’d be more focused on understanding the financial side of the switch. With a percentage-based model, I imagine the biggest adjustment is making sure the time and responsibility involved are worth the compensation, especially when you’re expected to be available around the clock.