Should a property manager charge a fee on a security deposit they collect from a tenant?

Good question.

No, you would never pay a property manager a fee on a security deposit you collect from a tenant. A security deposit is money that is separate and not subject to a management fee. Tell your property manager that they can collect a fee on rental income but not on a security deposit.

If your property manager attempts to charge you a management fee on a security deposit, this is a bad sign. You have an extremely inexperienced property manager if you are lucky. An experienced property manager should know not to ever do this.

When something like this happens it means that there is a mistake in the owner’s management company. A proper management company would not charge a management fee on a tenant’s security deposit.

You need to quit trying to manage your own property or have an inexperienced person manage it for you. You need to let a professional management company take over.

The new investors that do the best in multifamily don't look for apartments. Instead, they look to find experienced apartment investors that will let them invest into their deals. Being a limited partner you will avoid all the problems a general partner faces.

You then can focus on your core business or work and make more money to invest. If you are the type of person that wants to do things the easier and more efficient way, I created a group that can help you learn how to invest.

My group, the Benjamin Z Miller Investor Networking Group, meets every Sunday on Zoom. I created this group for new and experienced investors to network and make more contacts.

If you don’t know the market and are trying to act as a general partner, I can’t even tell you how many problems this will give you compared to being a limited partner that does not take on that responsibility.

Try and avoid investing in multifamily in states where the tenants have more ways to make problems for you. It is much more difficult being a landlord in New York compared to Texas. Texas is a landlord friendly state.

If you would like to learn more about multifamily investing, you should join the Benjamin Z Miller Investor Networking Group.
Once you attend one of the Sunday meetings you will receive a Google Sheets document with the phone and email of the other investors that attended.

From there you can reach out to numerous multifamily investors. I also am good friends with some of the best well known multifamily investors so if you need an introduction to a particular investor in some cases I can help you.

Before you do any investing you should invest more time and money in your financial and legal education. I offer education and training to landlords, engineers, doctors and dentists, and many others that would like to learn how to enjoy the benefits of multifamily as quickly as possible. If that sounds interesting contact my office by going to www.benjaminzmiller.com and fill out the contact form.

You also can register at meetup.com at the link below:

https://www.meetup.com/benjamin-z-millers-investor-networking-group/

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com
1-817-203-4160
ben@benjaminzmiller.com
https://www.linkedin.com/in/benmillersells/
https://twitter.com/BenjaminZMiller