@Sara977 @Debra300 @Dimitar27 @Lisa723
I really appreciate the discussion and learn a lot from other’s experiences and opinions on the important work of property management and the commission/payment topic.
I have been managing my brother’s two properties ( in addition to my own listed here with my name ) at 15% of the income. When the amount of income reaches 100k, which it already has, it is bumped up to 20% retroactively. One property has a large spa suite with hot tub, cold plunge, steam room. There are also two rooms available for massage therapy, facials, etc. We rent it at $800-$1000/night and it’s almost always rented May through October.
He hires people to clean, and alongside them does two major cleanings and repairs each year.
My work is to do the management, working closely and with quick responses to potential and residing guests. Sometimes I take credit card information and then pass it to my brother who runs the cards. I also work with posting reviews, responding to the reviews, and dealing with add-ons and refunds.
I communicate through email, texts, and phone calls. I also communicate with the housekeeper regularly and repair person if anything repairs are needed in between guests... This is my second job and it seems I am always doing this work throughout each day. I haven’t added up hours because it’s kind of hard to do it because it’s here and there, but since I’ve been managing the 2 properties since March 2020, his income has increased 30-50%, and this was during a pandemic.
He also has a hot tub biz and employs sales people at various commission rates. He likes the idea of incremental commission structures and recently we had a conversation about changing the commission structure for my management work. I am to propose something.
I’m thinking to ask something like this below and I would really appreciate your comments and feedback. I have a feeling that the commission we started off with is a little bit low. Like many who have posted here I don’t want to be greedy, I want to be fair to both of us. We have a good business relationship and I want to keep it that way.
2021
15% and a retroactive 20% at $100 K/year.
20% at $100K and
a retroactive 23% at $125 K/year.
2022
20% and a retroactive 25% at $125 K/year.
25% at $125 K and
a retroactive 27% at $175 K/year.
27% at $175 K and
a retroactive 30% at $200 K/year.