weighing property management
I am about to close on my second house. This means my first house will become my first official rental. I am a little underwhelmed with my knowledge of what I want out of a property manager. I know I definitely want a manager because I am moving out of state. Here are the three options.
Option 1: Property management with a rate of 10%. No lease up fee. In house maintenance because they manage primarily appartmanet units in the area. Biggest downside for me is the lack of software programs. I would receive my check via snail mail every month. Also means the tenant has to snail mail a handwritten check. This to me is an important enough issue that I really don't want the headache of that but I think their in house maintenance is a huge plus. I want to say they manage around 250 units but its been awhile since I interviewed them.
Option 2: Property management charging 9% no lease up fee. No in house maintenance. Appears to be a well run portal for tenant and landlord. Biggest concern with them is they have quite a few properties I believe they were nearing 700 units.
Option 3: Property management company charging 8% with 450 lease up fee. No in house maintenence. They are new and have approximately 55 units that they manage and quite a few of them are their own. Terrific automation in place at all phases. I just really hate lease up fees because its like your bleeding already during turnover and they stick the knife in and twist a little bit. Biggest concern is lease up fee and and very new company with in my estimation not as much experience.
Would love to hear any input specific or generic. I did find David Greenes book a great resource on talking to out of state property managers but after asking the questions I never felt like there was one that stood out as a home run. Currently leaning towards option 2.