Incentives to stay with property through sale?

I've been at a property for several years and was surprised when the adults in charge told me that they were listing it for sale a few weeks ago. I'm the only office employee (property manager w/o any extra office staff). I'm definitely a huge asset to selling the property and have been helping the broker with showings. They vaguely told me they would come up with some sort of incentive plan and wanted me to stay on. They stand to profit over 2 million dollars from a sale and there has already been a lot of interest. I have a feeling I'm going to get screwed over if I don't get these terms nailed down. The trouble is I have no idea what kind of ballpark I should be negotiating with on incentive$. Has anyone been in this situation?

Hi AJ,
I've been through a few property sales. In those sales, I have been offered a Stay Bonus. It sounds like you are going to be crucial to making the sale work for your owner. It's really pretty important for the owner to have YOU stay in your position through the sale, and to make sure the sale actually happens.

Those bonuses I had received in the past were usually based on tenure and salary. I also had to sign a confidentiality agreement (not to discuss the terms of the property sale and my bonus with other employees, potential buyers, residents, etc.) and agree to work through the sale closing date, at the minimum. The bonus was paid after the closing in the form of a lump sum. Most importantly, it was in writing.

With that being said, I would ask for severance, any unused vacation/sick/paid time off as well as a small commission or bonus for helping to make the sale happen. I am not comfortable speculating as to what you should request as far as a dollar amount, but feel that you can make a good judgement call based on what I have said here. And of course, ask for it in writing.

It depends, AJ, on what your pay rate is currently and your length of time with the company. Obviously, hind sight is always 20/20, so, in order to protect yourself, ask yourself what is in YOUR best interest. First, retention bonuses are offered by the owner when the owner understands your value to making the sale happen. In 100% of the property sales I have been involved, I was the only one showing the property(s) and presenting the asset. Usually this is because the manager will understand the position of the property and can present it in the most favorable manner. Managers are very valuable. The Retention Bonus is to motivate the onsite team/person to keep occupancy and operations optimal (in other words, don't neglect your duties while you hunt for another job all day long.) The time to get this nailed down is usually as soon as the Owner tells you the property is being put up for sale, but can happen a little later in the process. Some people ask for a percentage of their salary, but certainly, remember, most Owners actually have investors to pay off, debt, and bills to pay so some will not offer what you may think you are worth.

However, in addition to what Kristi suggested, please ask yourself if you want to stay with the property after the sale. New Owners often feel relieved to know they do not have to look for a new manager after they assume ownership. If you want to stay, remember to present yourself as an asset to those looking to buy the community. In that way, you can relax during the uncertainty that a sale can present.

Hi,

It is a big dilemma when they aren't telling you what to expect.

I have gone thru several sales and most management companies/owners will offer you a bonus for staying through the process.

There are many pros and cons to this situation.
The new owners like to pick your brain.
Some will tell you they want you to stay.
Some will just come out and say they are bringing their own people in.
You must weigh your options
Do I start looking for a new position
or
Do I feel comfortable staying and take my chances.

I hope this helps@
Best of luck,
Sara

Thanks so much for the 3 replies.

I was actually very excited when I found out the property was for sale, because while I absolutely love the property and residents, the management/owner can be frustrating at times to work for. I had been looking for other opportunities, and new ownership/management means that there is a chance that I can stay here and be happy. I feel like the chance that it is a good thing for me is greater than the chance it is a bad thing for me. However, I don't want to show my cards quite yet -- though the broker and potential buyers know that I am definitely willing to stay as long as it is a good company and fair offer. I'm treating each showing like a job interview almost. I just wish I knew what kind of ballpark was typical for these kind of bonuses, because it is a smaller company and I'm not confident that they will offer the going rate if there is one.

It is in the best interest of the owners to have you and your team stay in place during the sale process. The retention bonus is used to help ensure the team is properly motivated to maintain the occupancy and overall performance of the property. The bonus should be substantial enough that it makes the team want to stay. Below are the ranges that I have seen paid. The percentages depend a bit on the size and class of the property.

Manager 10-15% of yearly salary
Asst Manager 6-10% of yearly salary
Leasing 5% of yearly salary
Maint Supervisor 8-10% of yearly salary
Service team 5% of yearly salary


I do understand this process can be scary for everyone because you don't know what your future holds. Remember though it is in you and your teams best interest to make the property do its best. If the property looks great and is performing at its optimum the new owners are more likely to keep the employees that are already there. Knowing the ins and outs of the community gives you an edge on any competition out there!

Hi AJ and everyone,
I am in a very similar position right now. ASs the contents of the property gets packed, I am strongly involved with it (hands on) and coming up at the same time with clever ways to document things up and direct where the items are heading to via 4 different movers. My current bosses (current owners) are such great generous people that will remain as good friends forever. They told me during the showing process they would give me a large bonus. During the showings I put myself available 24/7 and for last minutes requests for showing too, making the realtors life a piece of cake to coordinate things with the potential buyers. I have 2 kids in college and a large bonus would most likely, depending on how much, take me and my wife out of the red and completely change our financial Lifes and be more realistic about a possible retirement one day. I am dreaming and speculating what that large amount would be. It is a multi-million dollars sale, and I am without a question that without my dedication during the entire process, the property would not be sold by now. Can someone help me with my dream of what can I expect of a large bonus as stated by my bosses (sellers)? What would it be in percentage?
Greatly appreciate any feedback.

Luiz

Got the email alert of a reply, I can't believe that's been more than 8 years ago already. At the point I made the post, I had recently found out that they were planning to sell the property. They had a REAC inspection that fall, and at the time said they were waiting on after the REAC to make the sale. They offered me $3200 if we passed with 90%, or $2000 if we passed with at least 85%, and to prorate my annual bonus, which previously had been $4600. in comparison, my annual salary was around $40,000, in a lower cost of living area.

Within a few months they had decided that they were selling to a local company I was excited for, and then my owners changed their mind and decided not to sell. A week before the REAC inspection, they fired me and would not give any reasons. I threatened to sue them if they didn't pay the bonus within 10 days, leveraging that this offer made it a contract, and they paid it out. I think they were trying to avoid paying it out. (they did end up selling maybe 5 or so years later)

I think you've made a mistake by not getting your bonus structure solidified; you don't have any leverage at this point. I'd also hesitate to think of anyone that owns multifamily housing and in a position of power/utility over you as a friend forever. they are good at putting on a friendly face but most of them are cut throat.