Why do property managers suck?

Starting Out
9yFollow

Why do property managers suck?

Jen Boyd
Nanuet, NY · Member since 2016 · 17 posts · 12 votes
Not meant to offend the property managers out there - I know the good ones exist. However, a common theme I've seen is how hard it is to find a good, reliable property manager that makes the money you spend on them worth it. So please share your stories of what has made you frustrated with your property manager (or what you're looking for in a good one!)
4Reply
265 views

Most Popular Reply

Brad LarsenPro Member
Property Manager · San Antonio and Austin, TX · Member since 2016 · 377 posts · 380 votes
9y

@Jen Boyd  Good morning Jen  - It's disappointing to see your troubles and I get exactly where you are coming from.  Property Manager has a low barrier of entry and in some states, zero licensing.  It makes the good property managers stand out even more.  

I would also ask - from a previous post of mine - Are you a "C" Class Landlord?

https://www.biggerpockets.com/forums/52/topics/402...

In the property management industry managing single family and multi family homes, we have classifications for Landlords that is never put on paper and probably never talked about.

This has probably never been published before, so here goes something new.... If you are a Landlord, you may want to read this and see what classification YOU would fall into. If the description fits you - wear it.

If you are subjective about your dealings with your Property Manager, it could help foster a better relationship between you and your property manager getting you better service.

Class "A" Landlord:

  1. Hires a Property Manager and is glad to pay their fees understanding that they provide a valuable service assisting them in growing an asset.
  2. Appreciates their systems, procedures, tools, and level of separation they provide from their tenants. They understand their job is often difficult being the punching bag for both sides of a management transaction that can last for years.
  3. Allows them the flexibility to make tough decisions in a pinch on their behalf. (Spending $505 dollars for an AC repair in July when their spending limit is $500)
  4. Understands that the Property Manager is not responsible for everything that goes on with the home - to include the weather and the marketplace.
  5. Is easy to get in touch with and responds well to phone calls, emails, and even texts.
  6. Realizes that by having a property manager and paying $20/hour (example) - it allows them to find bigger deals and more investments making $2,000/hour for their time.
  7. These folks are full time, possibly part time investors that have enough capital to back up their investments and truly understand that what they put out in management fees is far outweighed by appreciation and tax breaks. Simple depreciation is a monster and is often overlooked by a lesser class landlord.

Class "B" Landlord:

  1. Reluctantly hires a Property Manager after some minor effort to shop for the cheapest property manager they can find.
  2. Second guesses all repair items and laments about not having any money to cover large repairs.
  3. Often classified as "Reluctant Landlords" for never planning on having a rental home, but being thrust into the realm of owning one by an unexpected relocation.
  4. Wants two bids for every job in the effort to save $20.00 - not caring if the tenant goes without AC or hot water for several days.
  5. Does not understand basic accounting and needs constant explanation for what the income / expense statement means.
  6. Is difficult to reach often not responding same day for urgent matters.
  7. These folks are often reluctant landlords, first time landlords, and intermediate landlords away for a year or two then moving back into their home.

Class "C" Landlord:

  1. Grudgingly hires a Property Manager because their CPA told them to do so.
  2. Shops high and low for the cheapest property manager in town - then asks them for a discount because they are an "investor"..... with their two homes.
  3. Is abusive to the property management staff requiring constant communication and taking the attitude "Don't you know who I am?".
  4. Introduces themselves to the tenant behind the Property Managers back - telling the tenant they can call them anytime if the Property Manager does not immediately answer their every need. (This creates a Mommy / Daddy issue. The PM says "NO - You can't pay your rent late this month"....then the tenant runs to the Landlord telling them the PM said "We are evicting you AND taking away your birthday")
  5. Wants three bids for EVERY repair - no matter the inconvenience to the tenant - no matter the headache to the property manager...all with the effort to save $5.00. (Sounds dramatic - but this is true!!! - seen it many times before!)
  6. Blames the Property Manager for wind, hail, storms, tornadoes, winter storms, freezing pipes, foundation movement, dead grass, etc... Essentially, nothing is ever beyond anyone's control - it's always the PM's fault. This is a deeper reflection of that type of person never taking accountability for anything.
  7. Wants to sue everybody for....everything. Tenant did not water the grass last week, can we hire an attorney and sue them? You did not answer the phone on a Saturday, if you don't call me back and I will seek vengeance on you with my attorney!
  8. Leaves negative reviews on line about a property manager. Hides behind Google and Yelp to feel better about their cyber bullying. If the landlord truly had a real issue - almost all property management companies are governed by several entities to include the state. Threatening to leave a negative review if you don't get your way is blackmail and extortion. Same tactic the mafia has used for years....no different. If the Landlord has a real issue with the property manager - point 7 above may be needed. Leaving negative reviews on public forums is not productive for anyone.
  9. Is impossible to reach via phone / email. Then they respond at 10:00PM on a Saturday and is upset no one is available to speak with them at the time they finally call back.
  10. Will not reduce asking price in rent. If a home is vacant - with good marketing photos (and video) - and is being advertised fully.....here is a hint: IT'S THE ASKING PRICE! There are two things that rent homes - Price and Condition....and Price can make up for everything. The Landlord not willing to reduce their asking price at any cost is a flat out moron. If you want to do the math - assume your property rents for $1,000 a month. But, you aren't getting it. What do you lose every month that the home is not rented? That's right - $1,000. What do you lose every month if the home rents for $950? Well done - $50 / month or $600 a year. Which would you choose?
  11. Wants to do their own repairs. We have seen time and time again owners taking 6 months to do their own make ready repairs spending several thousand dollars MORE to do it and losing 4-5 months in possible rent. I have seen the total swing to be $10,000 with several investors....all one can do is shake their heads at them.
  12. These folks are often first time investors, overly dramatic reluctant landlords, emotionally attached to their homes and in often cases have a "I'm smarter and better than anyone else in the entire universe and I can do it all" attitude.

Ask yourself - which type of Landlord are you?

31Reply
See this reply in the discussion

61 Replies

Jump to latestLatest
  • Paul Hitchings
    Alhambra, CA · Member since 2015 · 142 posts · 78 votes
    9y

    You gave me an idea. I am going to build an app that does PM work and couple it with a tele-presence robot. 

    Question, would you be willing to hire a robot(powered by computer software) to do your property management work?

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    9y
    Originally posted by @Paul Hitchings:

    You gave me an idea. I am going to build an app that does PM work and couple it with a tele-presence robot. 

    Question, would you be willing to hire a robot(powered by computer software) to do your property management work?

    Tele-presence robots have lots of limitations, one major one being steps. They are a mainly a novelty for use in the office environment where someone can be there to assist if it gets in trouble. 

    Maybe I am misunderstanding your vision though. 

    0Reply
  • Steve SantacrocePro Member
    Rochester, NY · Member since 2013 · 101 posts · 48 votes
    9y

    @Philippe Busque that is true for PMs looking to make a quick buck. At our company, our goal is to make the tenants as happy as possible so they stay long term, and to make our owners as much money as possible. We think long term, as should EVERY PM company. Sure we could pinch you for an extra grand or two a year, but that's very short sighted. I'd rather make you an extra grand or two and let you reinvest those profits to purchase MORE properties that we will manage. PM is a long term strategy, you don't make much money for the first few years, but it eventually snowballs as you stabilize the units you manage and continue to add new ones. 

    3Reply
  • Michael Lee
    Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
    9y

    Hello and thanks for your question!  You certainly got many comments on this subject.  Property managers that suck is probably has to do with their education.  Good PM's know how to treat tenants properly, they think that it will be easy but the worst people rent and bad tenants come from bad screening and having rules and regulations and lease basics mean a lot and many tenants have to be trained on what you expect and go over the lease details and your minimum requirements as a manager.  This is a business and do not treat it like a hobby.  In many cases you get what you paid for and most property managers are weak at being a good property manager.  The basics are important and should be taught.

    Good luck to you!

    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Jen Boyd:

    Not meant to offend the property managers out there - I know the good ones exist. However, a common theme I've seen is how hard it is to find a good, reliable property manager that makes the money you spend on them worth it. So please share your stories of what has made you frustrated with your property manager (or what you're looking for in a good one!)

     I agree! There are property managers out there that give the PM biz a BAD name. Provider top PM service is JUST as important as the asset itself.  Especially if you out of state. You need someone to count on. 

    I always suggest looking at: What to Look For in a Property Management Company

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free