Is a management company needed for NN property?
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[{"id": "fjs855h", "text": "What happens the tenant fails to pay T&amp;I and building went up in flames?", "replies": [{"id": "fjs8sf7", "text": "Which N is missing?  Definitely the T&amp;I N?", "replies": [{"id": "fjs9wz9", "text": "Yes.", "replies": [], "depth": 3}], "depth": 2}, {"id": "fjt1h4m", "text": "You typically need to get proof from the tenant.  If they\u2019re not paying either, they\u2019re in default.  The landlord would then pay and bill it back to the tenant.", "replies": [], "depth": 2}, {"id": "fjtpnk1", "text": "Shame on the manager for not making sure taxes and insurance were paid. Hope the mgt company has E&amp;O insurance!", "replies": [], "depth": 2}, {"id": "fju8zgr", "text": "I wouldn't be comfortable giving the tenant responsibility of paying T&amp;I directly, too much at stake that can go sideways here. Insufficient coverage to start.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjsa7t1", "text": "Depending on exactly what the landlord obligations are you would need to know what role you would be walking into. Are you local or is this a distant property? \n\nIf your hesitant you may want to discuss a lower fee since it\u2019s a low effort property.", "replies": [{"id": "fjt14ol", "text": "This.\n\nI work in acquisitions for a REIT.  We typically pay our 3rd party property managers 2.5% of gross income.  In a property that\u2019s NN with the tenant handling most aspects of running the property, there is less for the PM to do.  Interview a few local management firms to get a sense of pricing and see if you can get them off the 4%.\n\nAlso ask if they plan on trying to charge the property for on-site management salaries in addition to the Management Fee.  If the property hasn\u2019t historically had the salary pass-thru, you may catch the tenant off guard during the CAM reconciliation....and have a pissed off tenant.", "replies": [], "depth": 2}], "depth": 1}]