Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
You know what I'd love to see, a forum section dedicated to nothing but community reviews of property management companies. Just like there is a Guru reviews forum, a place where we can get an unbiased perspective on the quality of property management companies across the country.
For example, in this thread the poster warns us against two property management companies:
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
17y
That's a great idea Matty. Nothing is more critical to this business than managing tenants and a property correctly. I don't think it's necessary to use membership in IREM as a criteria, however I think that the forum participants could certainly create a standardized means of evaluating a property management company using IREM's standards.
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
17y
Originally posted by Tim Wieneke:
I think that the forum participants could certainly create a standardized means of evaluating a property management company using IREM's standards.
http://www.irem.org/
That would be awesome! Like a BP "consumer reviews" section of property management companies, that uses a standardized means of evaluation. Perhaps weighted polling functionality as a way rank various aspects of the service being received.
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
17y
I can help. Though Ironically I am probably least qualified in terms of defining what metrics to include in the evaluation template. I bet the interview worksheet would be a great start, along with deriving that data from IREM as Tim suggests. Out of state investors - or anyone that uses property management a lot will be a great resource, hopefully some will chime in.
Altus, OK · Member since 2008 · 2k+ posts · 690 votes
17y
Originally posted by Matty M:
You know what I'd love to see, a forum section dedicated to nothing but community reviews of property management companies. Just like there is a Guru reviews forum, a place where we can get an unbiased perspective on the quality of property management companies across the country.
For example, in this thread the poster warns us against two property management companies:
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
17y
Originally posted by Mr_Investor:
Why not just have a forum that has reviews of every real estate service whether it be property management,HML's,banks,appraisals,realtor's,etc.
Given the long term relationship required with the PM, the consequences of bad PM, and the reputation of many PM companies, it seems worthy of an entire software application/web site in my opinion.
Also, If I had to filter property management companies by area in a forum containing reviews for; "HML's,banks,appraisals,realtor's, gurus, attorneys etc" it could be more confusing, especially if PM ratings have a standardized means of evaluation. To me it feels worthy of it's own forum.
But that is why it's here on the discussion, you may have a point, it could be worthy of its own forum to only a few of us. At minimum, it could be a great ongoing thread somewhere.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
17y
Originally posted by Matty M:
I can help. Though Ironically I am probably least qualified in terms of defining what metrics to include in the evaluation template. I bet the interview worksheet would be a great start, along with deriving that data from IREM as Tim suggests. Out of state investors - or anyone that uses property management a lot will be a great resource, hopefully some will chime in.
Honestly Matty, I'm a hands on manager so to do this right we'll need hands on and out of state manager's coming up with this as I won't know all the needs and desires of out of state investors.
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
17y
Here is a start. Listed below are some things I'd want to know for a property management company review. Perhaps each item can be rated on a scale of 1 to 10, or 1 to 5, with 10 being the best. I am pretty sure I am missing tons of stuff.
----------------------------------
Property Management Company Name:
Areas Serviced:
Reasonalble Fees:
Finds Tenants Quickly:
Finds Quality Tenants/Affective Screening Methods:
Gets Property Rented at Market Value:
Inspects Property Often and Thoroughly:
Scheduled Maintenaince Completed As Agreed Upon:
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
17y
I like this Matty. I also read Josh's PM invterview form. There's a lot to do with this. Let me work on creating an Excel sheet that can calculate this out. We can do a lot of these with hard data, then follow that up with scoring. Percentages and timelines will help investors alot to have realistic expectations.
Some other thoughts as I'm working on this.....
Management Fees: Note the percentage of collected Rents.
Placement Fees: Note the placement Fee.
Finds Tenants Quickly: Note weeks property is fully repaired and vacant until occupied.
Occupancy Rate: Total units under managemet x 12 (We'll call this O). Total units vacant x by number of months vacant (V). O / V will give us a vacancy rate. Subtract that from 100 and we'll have an occupancy rate.
Gets Property Rented at Market Value: Who do we use to determine market value? Section 8, Rent.com, Craigslist? Maybe the median of these?
Inspects Property Often and Thoroughly: I'd have to know more about what the expectation is here. This may be more a matter of agreements between the investor and management company. I have some units with reliable tenants that I haven't needed to visit in 6 months and they live right next door (of course, that could be why I don't need to visit).
Scheduled Maintenaince Completed As Agreed Upon: We should differentiate between regular maintenance and repairs.
Finds Quality Tenants/Affective Screening Method: Maybe this goes back to the occupancy percentages? Another thing we could probably note here is total repair bills per year from tenant damage divided by the number of occupied units to show an average cost from tenant damage per month per occupied unit .
I'm liking this. I think this data would help a lot of hands on managers evaluate themselves as well.
As to 1 - 10 ratings, we have to rate the customer service of the PMs, Responsiveness to investor phone calls, Tenant complaints, Maybe something in regards to city code violation letters being responded to by PM......
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
Matty, your idea here to generate data to make tratings of PM companies public to the forum readers is quite good, particularly for newbie out of state investors investors (or in state for that matter).
My current personal portfolio consists of 95% out of state and has for the last three years. In addition, I have assisted hundreds of investors to buy property out of state, a large portion of them bought through my company which requires me to assist them in hiring their team members and managing them. I have extensive experience on this topic and would be more than willing to help out with ratings, questions to ask at interview, as well as the answers to expect, which are not present in the current questionnaire on BP.
Along with the help of Tim, Matty and others, we can make a highly beneficial resource of PM ratings across the country and have all the results posted and kept up to date in a special PM ratings thread.
Let me know when this is ready to launch and I will help out.
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
17y
Not enough interest in this one?
I am really interested in this one. I'd love to see it. Will thanks for offering to help out. I know you have a lot of experience in this area.
I think it's a great idea! Perhaps more people will notice this thread now that the holidays are over. I noticed things were quite slow around here in the month of December.
Ridgeland, MS · Member since 2009 · 106 posts · 0 votes
17y
I am very interested in this coming to fruition. But reasons are selfish, I would like to see what you guys look for in PMs and what you don't like so we can make changes to ours.
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
17y
Originally posted by Adam Black:
I am very interested in this coming to fruition. But reasons are selfish, I would like to see what you guys look for in PMs and what you don't like so we can make changes to ours.
That is awesome Adam!
My reasons are far from altruistic as well. I simply want an unbiased review of property management companies in various areas. A "rip off report" if you will for some. And a "two thumbs up" report for others. Reviews on a site like this where many here will be able to discern if the "thumbs up" reviews are legit or not, will yield confident decisions for many of us in choosing property managers. I am simply looking for the best managers to run stuff. Also selfish.
Real Estate Investor · Myrtle creek , OR · Member since 2008 · 343 posts · 13 votes
17y
My experience with property managers so far has been dismal to say the least, I think your forum for reviews idea is great, thanks for bringing this thread back up, i had forgotten about it. Jim
Real Estate Investor · Dallas, OR · Member since 2009 · 74 posts · 1 vote
17y
Being an out of state investor, the main thing I look for in a property manager is good communication!
How fast do they respond to my emails? Do they inform me when tenants move out or when major repairs are needed? Do they send photos of the condition that the tenant left the property? Do they send photos after the property is made rent ready? Are they timely on getting my payment to me? I have one property manager that doesn't send me the December rents until the first week of February.
Bottom line is- keep me in the loop! I shouldn't have to wait 2 months to find out that the property burnt to the ground!
Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
17y
Josh, this is a very solid idea, and one that could create a LOT of value for BP members!
I think we have ALL struggled with property management. It seems to be the underbelly of the investment world.
A manager can make, or break, your portfolio. You could own the best property in the world, but if it is managed poorly, you will lose money!
*On the flip side, managers need to be respected. I have seen too many investors ride a manger like an ole' mule, making unreasonable demands, and causing many of their own problems. Like anything else, balance is needed.
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
17y
I think it is a great idea . . . I'm just trying to figure out the best format to use. Do we place this on the forums or create a separate application to handle it? Suggestions/thoughts?
Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
17y
My thought is that it should start in a "heavily" moderated forum thread, and then evolve into some kind of application over time.
There is going to be a lot of information to weed through, and I would assume that caution would be needed to prevent the slandering of a company by folks who might have an agenda...or on the flip side......people trying to make a company look better than what it is.
I also know of a few companies that people have had a great experience with, while others have nothing good to say. So I can see that it will be a challenge.
** We have a company here in Indianapolis called "Angie's List". It is an amazing concept. A business must meet a high standard to be on "the list", and it has changed the way people find services in our market.
When you get a moment, take a look at what they are doing. I am confident that there are some concepts in their business model that could be very helpful with this project.
Tucson, AZ · Member since 2008 · 945 posts · 45 votes
17y
A few more thoughts:
My PM in Tucson was great while it was the original owner. Near the end, the company changed hands, and I do believe that caused me a problem. As long as I was a (permanent) owner, things appeared to be hunky-dory. After I decided to terminate them and sell or move into the house, (just as the new powners were taking over) things seemed to fall apart. The tenant was going to stay with them, going into another of their rentals, so they protected him, not me and my property.
Move out procedures were sloppy and incomplete, Repair work was shoddy,
So maybe those things need to be on that list, too: repair quality, owner protection even when they will terminate the contract, etc.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
17y
That's a good idea. In the past, I've usually gone with managers who are affiliated with the national association of residential property managers - they have a special certification program. I've had to interview a lot though when looking - went through 30 interviews one time! For me, personality has a lot to do with it too - people have different ways of doing business. Looking forward to the new forum! :)