Bonus to property management upon sale?
[deleted]
[{"id": "g19rsv7", "text": "Does it really matter if it is typical? You should look at your agreement with the manager. If it requires a fee upon sale of the property, then give them a fee. If not, don't.", "replies": [], "depth": 1}, {"id": "g19rvmf", "text": "Maybe it wasn\u2019t clear in my post. It is a bonus, not a requirement.\nSo yes, it matters if it\u2019s typical. Like tipping in Europe v US. The menu in Arizona doesn\u2019t require I tip but I want to know if it\u2019s typical. \nIf you don\u2019t know if it\u2019s typical, please move on and let others comment.", "replies": [{"id": "g19v8uc", "text": "You know I wasn't going to comment again, but your original comment irked me. Not sure why you even mentioned that if you don't have millions in sales to not comment as if that is applicable. Imagine giving money to a property management company that isn't even required.", "replies": [{"id": "g1a06sl", "text": "Yes, imagine giving money to a waitress that isn\u2019t even required. I was asking if it\u2019s customary. You don\u2019t know so you made some unhelpful comment. \nPlease move along.", "replies": [{"id": "g1a1g43", "text": "Not even sure why you took offense to my first comment when it is true. Comparing property management which is handled through agreements to waitresses who work for tips make no sense.", "replies": [{"id": "g1a3thc", "text": "Not offended, it\u2019s just an unhelpful comment. \nApplebee\u2019s has a price listed so I pay it and also know that *its customary* to tip. My hairdresser has a price but *its customary* to tip. My movers are paid via a contracted price but *its customary* to tip. My first job as an attorney had a salary but it was *was customary* to give bonuses. \nI was asking if it\u2019s customary in the PM world. You don\u2019t know. That\u2019s fine. You don\u2019t need to comment when you don\u2019t know. \ud83e\udd37\u200d\u2640\ufe0f", "replies": [{"id": "g1a6soq", "text": "You are comparing tips paid to physical laborers to a \u201cbonus\u201d paid to a desk job in property management. That isn\u2019t even remotely comparable. As for your attorney bonus, that wasn\u2019t paid for directly by your clients but your firm, so i don\u2019t see how that is even applicable, but it seems you fail to see that.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g19vcb6", "text": "I\u2019ve never heard of such a thing.", "replies": [], "depth": 1}, {"id": "g1a4y5s", "text": "Offer something $17 is not a lot in my opinion.\n\nYOu could also breakup as a basket of fruits, candy for everyone in the office...", "replies": [], "depth": 1}, {"id": "g1a6chb", "text": "I have never heard of this and also I have never ever ever ever heard of property management person asking an owner what type of bonus to expect. I have heard of legal agreements where a management company would receive a bonus upon sale as an incentive to be on their best behavior during the DD period.\n\nWhat you do with the proceeds of your sale are 100% up to you, and I would be appalled if someone tried to suggest to me what amount of money I should just arbitrarily give them. \n\nMaybe you have more of a relationship with these people which would explain why they feel it\u2019s ok to ask in the first place. To me it reeks of unprofessionalism and entitlement.", "replies": [], "depth": 1}, {"id": "g1aitu1", "text": "Lots of annoyed comments here. It is not typical. But it\u2019s only $50 per unit so think of it as \u201cdid they help me get an extra $50 per unit\u201d which equates to like $5 in extra rent per month\u201d and decide if it\u2019s worth it to you. Again, it\u2019s not customary but the amount isn\u2019t very much.", "replies": [], "depth": 1}, {"id": "g1an7dr", "text": "Wow.  I'd respond with something like \"let's see if/how the sale goes\" or not at all.  \n\nThen after closing I'd leave a review.  That's incredibly tacky.  And no, not customary at all.", "replies": [], "depth": 1}, {"id": "g1aokpo", "text": "Whats in the contract?", "replies": [], "depth": 1}, {"id": "g1ar2zh", "text": "Interesting that all the posts at the moment say it's not typical.  It's typical in  that size and above in my experience and observation.  That said, I'd be a bit put off by the presumptive question.  \n\nI'll also say that the existence of a bonus is typically communicated during the sale process.  Your PM has some incentive to yank any real talent off your property when it goes to market. The value of you not taking an NOI hit during the transaction is far more than say 10k of bonuses spread around.\n\nEdit: I might also point out that I believe good PM makes me successful so I'm happy to bonus for that. It doesn't sound like you're very happy with your PM company so I get that's a factor as well.", "replies": [{"id": "g1b7eku", "text": "Yes, the PM made it very difficult for me during the process, such as threatening to not give the keys to my broker for the walk through, trying to cancel the walk through completely until I involved an attorney, etc. I think the only reason we got to closing is he didn\u2019t find out about the sale until we were very far into it....appraisal and property condition report were already done and it was just the buyers 100% unit walk through before he found out. He didn\u2019t allow my on-site manager whose salary and benefits I pay to accompany my broker either...so he literally did everything he could do to stop it. I believe the other bonuses I\u2019ve given went to his daughters that work the admin stuff in his corporate office and not to the woman who actually deals with the tenants. (Based on the fact I get \u201cthank you\u201d emails from her when I mail her money at Christmas but she\u2019s never mentioned a bonus from me). I think I\u2019ve decided to let them know I\u2019m giving bonuses on my own so they don\u2019t need to withhold anything for it. Then I\u2019ll send the money directly to the woman who actually worked hard on my property.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g1fstkb", "text": "Up to you. Was she good? Is she going to have a job after you sell? Do you want her to PM other properties for you in the future. 17/hr Is basically minimum wage....\n\nGood for her for asking, and not just rolling over and being a zombie employee,", "replies": [{"id": "g1n120e", "text": "Oh I\u2019m definitely giving something to the employee who makes $17/hr. It\u2019s the owner of the company asking me to give bonuses (which would then be up to his discretion on who received what, so primarily his daughters, who only do bookkeeping, and not the actual on-the-ground management. As an aside, they make six figures in management fees from me every year. \nBut no, I won\u2019t need future management from anyone.", "replies": [], "depth": 2}], "depth": 1}]