Need Honest Advice - Property Management Worth Pursuing?
Hey All, 

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I have been a retail landlord rep for a local family in my market for the past 3 years doing all their leasing for them and just recently, one of the family members mentioned he'd be open to hiring me to additionally manage the 5 strip centers they own, as he's considering moving to FL. 

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Based on the below, can someone shed light on 1) the amount of hours per week I can expect to ballpark towards this and 2) what I should expect to negotiate for a fee for this work. 

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* \# of properties: 5
* \# of tenants: 27
* Est. NOI on this portfolio: $550,000/yr (no mortgages at all)
* Drive time: all properties within 45 minutes or less of each other. 2 are within a 5 minute drive of each other, and the other 3 are within 15 minutes of one another. 

All of the tenants are local mom and pop tenants, leases are modified gross  w/tax increases over base not NNN
[{"id": "j129etj", "text": "I don\u2019t know commercial rates but residential is 10% of rent. Not sure if that helps", "replies": [{"id": "j158hms", "text": "5% for every deal I've ever seen, Midwest US", "replies": [], "depth": 2}, {"id": "j231t2s", "text": "3 to 5 % in the northeast NYC mainly", "replies": [], "depth": 2}], "depth": 1}, {"id": "j12qcdm", "text": "You must be available 24/7 unless someone else does on call.", "replies": [], "depth": 1}, {"id": "j14mvjd", "text": "Make sure you get a piece of any new deals or tenant extensions, otherwise it\u2019s not going to be worth it", "replies": [{"id": "j15pwki", "text": "Thx for feedback...I already have a separate agreement with them for brokerage so Id be covered on that. More interested on how time consuming this will be as I have plenty of other listings, consulting work, etc that I need to attend to", "replies": [], "depth": 2}], "depth": 1}, {"id": "j15a76d", "text": "My biggest caveat to starting property management for a client is looking into the insurance you would need first. E&amp;O insurance is expensive, and while some little guys go without, there are about 1,000 little things that can go wrong which could quickly bankrupt you without coverage.\n\nAs far as rate, in my market, something around 4% gross rents collected is normal.", "replies": [], "depth": 1}, {"id": "j15ctqr", "text": "Let\u2019s assume gross rents are $700,000, 7% times $700,000 is $50k, that\u2019s your fee to manage, maybe he negotiates your fee down to $40k. Since you are not going to be paying for errors and omissions insurance or other liability insurance, have your attorney draft a release of liability for you at his expense for which he will sign. Lastly, have your attorney draft this property management agreement in writing, include, that you will be the exclusive agent for leasing (with commission details) and or sale of any of these properties. Once you get all the details ironed out, tenants notified and the process running smoothly, I see this as a 6 to 10 hours per week responsibility.", "replies": [{"id": "j15q4gv", "text": "Thanks so much. Greatly appreciated", "replies": [], "depth": 2}], "depth": 1}, {"id": "j16m8vr", "text": "5% of gross rents is typical in the markets I work on for retail. Since this is on the smaller side, ask for 10 and see what happens. You would be signing up for an assload of work for a small payout. On the other hand if you ever had plans of starting your own brokerage. This account could give you more market presence and leads to other properties you can manage/ lease/sell. Sounds like an interesting opportunity, but be prepared for an extensive workload.", "replies": [], "depth": 1}, {"id": "j1d6wkn", "text": "Having good relationships with vendors will be the biggest help to you and significantly cut down the work load, especially since you have gross leases. Can save you several hours or an entire day if you can simply call your roof guy when a roof leak is reported. Or your hvac company on call when you get a report that heat isn\u2019t coming on. \n\nHave 2-3 companies in each field so you can get competitive pricing and timely responses. HVAC tech, plumbing, roof, parking lot and a general handyman for the smaller stuff.\n\n\nIf you\u2019re collecting rents having an accounting system that you can automate to send statements and receive rent online is another huge time savings. \n\nAll in probably 10-15 hours a week at most and you can cut that down simply with experience and systems.", "replies": [], "depth": 1}, {"id": "j1mcnzr", "text": "4% of net in MA Is benchmark salary for commercial property managers", "replies": [], "depth": 1}]