Rental Property Investor · Prosper, TX · Member since 2021 · 11 posts · 8 votes
I just went under contact on my first investment property in Sherman, Tx. The property is a duplex with one side leased for a year. The other side has a month to month tenant in it that is currently moving out. I want to give the empty unit some light renovations before listing for lease. I would greatly appreciate any recommendations for a contractor in the Sherman, TX area.
Also, I am looking for a property manager. I'm debating if I will manager the property myself for the experience, since this is my first property. Part of me doesn't want to deal with it and thinks a PM would be the best route. I'd like to hear everyone's thoughts on self mangling or not. Please send any PM recommendations my way that service the Sherman, TX area.
Thank you all in advance for your help. This community is the reason I felt confident pursuing this dream.
@Robert Ikard Thank you for your response. Do you say because it would be educational or for more cash flow?
Both actually. You will never know real estate well until you manage and lease it and maintain it yourself. I have a podcast you may be interested also.
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.
We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
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@Ryan White I recommend you reach out to @Kyle Mccaw with McCaw Property Management. McCaw Property Management has been managing all my rentals in the DFW area for several years. They also service the Sherman/Denison area too. They even have a make ready arm that can provide all your make ready needs at a much lower cost that other GC's. Plus, their pricing is very good. But you will get varied opinions on BP regarding to self manage or not. But personally even though I have the experience to own my own PM I choose to outsource this to another company because managing rentals is not my core competency. Think of it this way. Do you want a hobby or a business? Some of the most successful businesses outsource their non core elements of their business to others that do it better. Logistics is the big one that comes to mind. So I suggest you focus on what got you to where you are today as a REI and not to self manage. You can always switch to self managing at some future point too. Hope this helps.
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