You need a property manager to manage one single-family home? No. You definitely don't. Why do you want to do that instead of manage it yourself? If it's a long-term renter, it's a cake walk if the property is updated and you will save 10% a month.
Are you in search of a PM for a single property? If that’s the case, I strongly recommend managing it yourself. Not only will this help you save on additional costs, but it will also provide you with valuable knowledge and experience for any future endeavors.
Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.
To avoid going through the same poor experience, keep reading.
Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.
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, they often select the first PMC they call or that calls them back!
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!
A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?
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😊
Consider the screening criteria they use to qualify your tenant! Property management companies vary greatly (even within the same market) on their qualifying criteria. Make sure you are comfortable with who they place in your property!
for anyone else picking a pm for one house... jonathan’s right, a single family can be pretty easy once you have a good tenant. the expensive part is usually the gap between tenants. at $2k rent, the difference between an 8% and 10% manager is $40 a month. one extra month vacant costs $2k. so i’d spend less time arguing over 2% and more time finding out how they lease a house when the first asking price isnt working.
my team handles day to day work for multiple pm companies. i’d ask to see a recent single-family listing – how long did it sit, when did they change the price, who made that call? then get a sample owner statement and repair invoice, and compare the charges to the contract. fees/markups are easy to miss when somebody’s just walking you through their pitch. thats where you find out what managing the house actually costs.
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