Haven’t posted here in a while so here we go second post of the day.
In our recent value add park acquisition things went smoothly at the beginning, we transitioned the payment method, signed everyone into new lease, sold 5 existing PoHs two month into ownership, etc. previous maintenance guy was paid 3k a month to mow grass so he was let go and new manager works at local county construction, knowledge with repairs, machinery, etc. wife is good at paperwork, communication (not so sure rn).
So everything seemed working well in our favor, we’re envisioning a quick value add then refi cash out / sale play. However it’s getting a bit strange now. What I’d like to call over involvement issue. The managers help out with additional tasks like installing water meters, renovating office spaces, which we made additional payments to them. On top we provide commission on sold PoHs, etc.
The issue is they’re being overly too involved almost to the uncomfortable level, such as pushing us to purchase machinery like skid steer so they can do snow removal, road repairs for potholes, which I understand it’s a good thing… but at the same time numbers are important, even when it makes sense to hire out 3rd party to do it then it feels hard to say no sometimes.
One big concern is having too much skin in the game, aka if we had to change managers in the future then those big purchases not only do not add value but also becomes a liability for the maintenance.
What do you think? And how would you handle it? Guess just trying to rant a little lol
Forget to add, in other stabilized parks our communication with the park manager is minimal, typically they mow the grass, do the meter readings, and post notices when necessary. So dealing with managers like this is beneficial and tiring at the same time.