Worst case scenario question(s): I realize that you have to study up on both the property and management company you’re considering hiring (if you’re not purchasing in your neck of the woods). But of course, nothing’s perfect, and even after all of your research you may, at some point, find yourself spending more money than anticipated. Sometimes there are hidden problems in the property that you didn’t originally pick up on. Other times you may be dealing with an incompetent manager. The monthly numbers (good sticky on the main page) are going to indicate how things are going, but is there anything in particular that should be paid attention to that may be inflated? That is, where are managers or management companies sometimes a bit loose in their enforcement of an agreed spending budget? Is there an industrywide unspoken accepted level of flexibility in certain categories? Or is that part of the research too, to find out who plays around the least?
I can't speak for whether there is an industry standard or not, but I won't use anyone on any side without checking their references. I want as many references as I can get and I want to know any problems they've had with them.
The current property manager that my investors use gave us 3 references and they were candid enough to tell us problems they had with them and I received good information about the company and so far have had no problems.
Thanks for the response.
Yeah, that seems to be the reply I get from others I've asked. Check, double-check and triple-check the company before signing them on.