Job offer advice....

Ok. I recently interviewed for a position as PROPERTY MANAGER for a 72 unit (market) property, this property is 40 years old and the current/soon to be previous manager let maintenance issues slide; which led to a number of maintenance issues such as Mold, leaking plumbing, and pest control issues. I am told that delinquencies are not an area of concern.

Here is what they are offering:

-ONSITE (which I must have), but the manager unit is attached to the office; gas/electric/H2O included.
-$1350 per month... this calculates to less than $8.50 per hour. Minimum wage is $8.25 per hour in California!
-NO BENEFITS!

My last position as ASSISTANT MANAGER paid $12.50 per hour for a NEW 80 unit tax credit property.

What I am seeking is:

-$24,000-$27,000/year, which is roughly $14.00 per hour.
-ONSITE
-Benefits (minimum med/dental/life)

I am considering accepting what they are offering, with the condition that I get up to what I am seeking after I complete a 90 day probation. I am only considering the idea as a means to get my foot in the door, but I think this is ridiculous! Even in this economy.

According to Salary.com; I know that the bell curve for salaries for ONSITE Property managers tops out between $48k and $63k per year. The $1350 per month is roughly 1/3 of the low end of the curve. I understand that these reports do not allow the entry of specific variables, such as the number of units and the age of the property. This initial offer is WAY light......

Any advice????

This sounds just like the job I just took. 48 units, conventional, 40 years old. I counter offered at $1600 month/bi-monthly. Bonus for renewal and move-ins (had low occupancy); smaller bonus for collections and occupancy over 95%.

I have spent the first nearly two months doing the following:
Getting bids for mold and subfloor damage from moisture and water leaks. Getting bids for water leaks outside under the concrete. Lock-outs every week because of old, deteriorating locks.
Trying to figure out how to budget for all of the sheetrock and mold repairs needed FOR EVERY UNIT.
COMPLAINTS from previous residents about the really bad previous management company and what they were offered and what they haven't received yet. Included...carpets cleaned, new ceiling fans, unfinished maintenance work.

It's been tough, but challenging. You'll earn every penny on an older property.

Sorry but without knowledge specific to your primary market, it would not be proper for me answer directly. You have a couple of ways to look at this.
(1) The value of your apartment compensensation and any included utilities should be included in your calculation. Take the annual value and divide by 2080 (as that equates to 40 hours a week times 52 weeks). One thing to be careful on is making sure your apartment is required you live on site or you are allowed this as an exempt employee under IRS guidelines. Several companies in past years were found in violation and not only did they have to pay fines, but the employees had to pay the taxes and penalties.
(2) Survey similary properties in size and age, and attempt to get a median salary to work with. Also, if what you are about to enter into is more challenging, you need to be compensated for it if they expect you to turn it around.
(3) As a manager NEVER look at it by hour from an exempt position. First we know this is not a nine to five job and the hours you will normally spend as a manager cannot be linked to how you were compensated as a APM. You're about to enter a whole new world. I have never heard a new manager going from APM say, "Just what I expected." Just be prepared.
(4) Last, tax credit and affordable managers are usually paid much less than conventional (on average), even though I think it should be the other way around based on all the extra inspections and documentation they have to take care of (compliance issues, reports, etc.).

Other factors are your experience level, designations, etc. There are just too many variables and each market is non-homogenous, meaning you can't compare San Francisco to Oklahoma City for obvious reasons. Your best bet, get with your local apartment association and/or contact other managers for some insight.

Larry

Johnny,

It seems like the pay is awfully low. That's about what I make at my 40 year old 83 unit property. But since I already know what my property's budget is, I think my pay is realistic. I'm in Oregon so the cost of living here is much lower.

This sounds a little backwards but going from an assistant manager position to a manager position you may have to take a step down in pay until you prove yourself successful at that level.

My advice, take the job if you need it, then prove yourself worth the money. If you ask for more money or the promise of such before you are hired, they might be more inclined to offer the position to someone else. As you can probably tell, I'm not so great at salary negotiation!

Good Luck!!

This again is where doing your homework will benefit you. I strongly suggest you call other managers, call your local apartment association, and do some research.

That's exactly why I have posted here and on other message boards seeking advice.. I am still trying to do my homework; this way I can call the guy back and renegotiate. I know what I am asking for is STILL below what the averages show I can ask for; even if I take into account the value of living onsite.

My biggest problem is that if benefits are not offered and I am going to need to PURCHASE my own medical and dental coverage, that will leave me with next to NOTHING to live on. When I was married, I was in a position to be able to turn down the benefits packages; because as a schoolteacher, her employers offered better packages than my employers did. This is not the case now.

I have feelers out to find out what I should be offered with a staffing agency, and the CAA; as well as my local apartment association.


What I am considering countering with is this:

Ask for $1500 per month PLUS the unit to start, at the 90 day mark; if my performance has been satisfactory, I would ask to be increased to $2500 per month PLUS the unit PLUS benefits. I would also ask for performance bonuses if occupancy is maintained at 95% or better with delinquency at no more than 5%. I would also ask for performance reviews and merit increases semiannually from that point. This ties my pay to my performance.

I think I would first consider the benefits of living on site in a community where residents may have access to you 24/7. That would definitely mean adequate compensation for dealing with on site issues after hours and on weekends. Secondly, what is the apartment like? What is its condition? When a company provides an apartment and utilities that is a great benefit - minus the other issues. I work many, many hours that are not necessarily compensated, but knowing I have increased a company's cash flow from -$3000 to a profit of $35,000 in 2 months means more to me than the money. That personal satisfaction for me is priceless.

Does anyone know if there are better resources online where I can get a better ballpark figure on salary for PM positions, hopefully ones that allow me to enter the variables to include value of rent, number of units, and age of property, etc. ?????

New information:

I called the property as a mystery shopper (I even hid my caller ID from being displayed) and found that a 2 bedroom rents for $700 per month; making the total compensation $2050 per month. Let's estimate the utilities at $75 per month= $2125 per month. Given that there are no benefits; that still seems to be very LIGHT.... If I counter at:

First 90 days
Paid Sal Rent Util total
1500 + 700 + 75 2275

After 90 day review
Paid Sal Rent Util total
2500 + 700 + 75 3275 PLUS Benefits

I could SETTLE for:
Paid Sal Rent Util total
2000 + 700 + 75 2775 PLUS Benefits

What do you think? Any tips?

Ok, I pulled payroll information from an IREM database I found. Where is this property located? It's a couple of years old but lists by age of community and size. Might be able to give you some more information with the understanding I still suggest you call other communities and talk to the managers. This isn't about apartment value if everyone else is also giving away an apartment as part of their package, it's about you getting a fair salary.

Oh, and when you call other sites of comperable age and size and talk to the Manager, tell they who you are and why you are doing this. As them for a range. It's like me with shopping a site, I always tell them who I am and what I am doing. I tend to get real information and build relationships rather than sneaking around.

I don't really like 'sneaking around' either, but when I call some of my comps for market survey info, they only give out their market rent prices. There are several local companies who refuse to share information with their competition. For these comps, I have to pretend to be a prospect.

Rose, good point. Of course that is a totally other topic and that is working together. It is too bad we all can't understand it benefits all of us if we share info. Since we have ventured into this area I might as well give my take on this. Visiting your comps and getting to know one another has always worked best for me in obtaining additional info and accurate info. Just doing survey's on the telephone does not give you the true market picture. to really understand your comps visit them and offer for them to visit you. Building a relationship with other managers usually builds trust to share info later. Here is the other side of the coin, if they call you and ask for market information you may say to the manager we will be happy to share our info if you share yours. I have had this work on more than one occassion.

We're all in the same boat together, let's all row together and we might get some where.

I am actually calling around for more information; the local housing association(Sacramento Rental Housing Authority) does not maintain that kind of demographic information; I am still waiting for contact from the CAA and will be having lunch tomorrow with a friend of mine who might have some resources/info for me.

The Property is:
72 Units
40 Years old
In Sacramento, CA

Any other information you need?


Thanks again!

One more thing... I happen to ALREADY KNOW the manager at one of the neighbor properties, because that property is run by my former employer, and she came to my site on more than one occasion helping us out.

I have information for LA, which is closest location to Riverside it give statistics on. It is telling me total payroll is running on average between $1,125 and $1,388 per unit for a property of the age you are talking about. This means TOTAL payroll will be in the range of $81,000 and $99,936. Assuming you would have one office and one service for a property of this size with the manager making slightly more than the service person we can assume this takes salary including taxes in the range of $41,000 to $51,000. Now remember this takes into consideration benefit costs, so you may be looking in the neighborhood of $35K to $44K. This normally would not include apartment compensation in this number. As you know I don't like breaking manager salary down to hourly but this equates on the low end to approximately $17.00 per hour before apartment value is considered. Hope this helps.

Thanks. I have been offline with connection issues for almost 36 hours (since about Midnight Tuesday; until about 2pm Thursday)...

Does that report have information for SACRAMENTO???

If so, can you scan the page and email it to me as a PDF?