Selecting New Property Manager for 16 Unit Apts (New Investor)

Multi-Family and Apartment Investing
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Selecting New Property Manager for 16 Unit Apts (New Investor)

Dan O'Neill
Investor · Charlotte, NC · Member since 2015 · 9 posts · 2 votes

Hello Everyone, 

I am under contract to purchase an apartment complex with 16 units. Given the complex's current state and a discussion I had with the current management company, I feel a change in management companies is in order.  Any suggestions for finding a new management company?  Below is an outline on the selection process I was thinking of using.

1) Create a property profile to include a brief property description and revitalization plan

2) Create a survey of questions for PM companies to complete (borrow heavily from Elizabeth Colegrive -->

http://www.biggerpockets.com/renewsblog/2015/10/09/questions-ask-property-management/)

3) Send an email with documents attached to property management firms servicing the area surrounding the apartments

4) Follow-up with a call to ensure receipt and obtain an initial impression.

I have actually already created the property profile and survey but don't see a mechanism to them to this forum post.

Best Regards,

Dan O'Neill (Charlotte, NC)

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Michael Bowman
Investor · Charlotte, NC · Member since 2015 · 187 posts · 137 votes
10y

hey Dan!! 

Congrats on your new purchase!!

I like your abovr proposal. As brokers ourselves, I think we have all met that buyer or seller that didn't do their homework on an agent, and ended up with a bad egg. I think interviewing is a lost art in this business. 

Whenever I'm hiring for anything, I'm always looking for energy. My hire needs to wake up in the morning excited about what they do. If it's just a J.O.B. for them, you will not be satisfied. 

I do property management myself, and though I don't have the volume like some of the big players, when competing with them for a property owner's business, I consistently beat them because I out-hustle, out-work, and ultimately have more energy than them. 

Other than hustle, the number one aspect of the business that lacks is marketing. I'm amazed at how many PM companies put a sign in the yard and call it a day. You have to blast the units everywhere, and create such a buzz around the property, that you maximize the amount of potential tenants. Good photos, online video tours, and social media advertising are where so many drop the ball. 

We are here in the Charlotte market. I'd love to meet with you and discuss the units further. Let me know if there is anything else I can be of assistance with. 

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Dan are these rougher tenants or a property in a rougher area?? If so you need to factor in higher property management fees into your purchase.

    A classic mistake new investors make is not factoring PM fees in and self managing only to find out later they want a PM. Another mistake is saying that a PM company will do management for 7% on a troubled mid size property. No way that happens.

    A lot of PM's for multifamily will not even take that on due to area and tenants. An easy 7 in an affluent area is better than a nightmare 10% fee that takes 5 times the work and sucks away all of their time. In those cases you have to look for PM companies that work on turn around type properties. They will cost more money so you need to factor that into your offer price.

    In rougher areas or even C areas good PM turnaround companies can cost 12%. 

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  • Michael Bowman
    Investor · Charlotte, NC · Member since 2015 · 187 posts · 137 votes
    10y

    hey Dan!! 

    Congrats on your new purchase!!

    I like your abovr proposal. As brokers ourselves, I think we have all met that buyer or seller that didn't do their homework on an agent, and ended up with a bad egg. I think interviewing is a lost art in this business. 

    Whenever I'm hiring for anything, I'm always looking for energy. My hire needs to wake up in the morning excited about what they do. If it's just a J.O.B. for them, you will not be satisfied. 

    I do property management myself, and though I don't have the volume like some of the big players, when competing with them for a property owner's business, I consistently beat them because I out-hustle, out-work, and ultimately have more energy than them. 

    Other than hustle, the number one aspect of the business that lacks is marketing. I'm amazed at how many PM companies put a sign in the yard and call it a day. You have to blast the units everywhere, and create such a buzz around the property, that you maximize the amount of potential tenants. Good photos, online video tours, and social media advertising are where so many drop the ball. 

    We are here in the Charlotte market. I'd love to meet with you and discuss the units further. Let me know if there is anything else I can be of assistance with. 

    1Reply
  • Justin F.
    Investor · charlotte, NC · Member since 2012 · 121 posts · 21 votes
    10y
    Keep us updated on your search. I am in this market as well and use two separate companies. It is super tough to find anyone to care as much as you. Also, as Joel mentions, neighborhoods make a huge difference for many pm's. I look for people with good systems in place and someone that has a team. So if they go on vacation it's not like my tenants have no one to reach out to. What I've seen and bp has articles about this is the single manager who is amazing at what he does. But then grows large quick because of how good they are but doesnt build a team and therefore has less and less time to handle your stuff. Pm me if you want to chat more.
    1Reply
  • Justin F.
    Investor · charlotte, NC · Member since 2012 · 121 posts · 21 votes
    10y

    @Dan O'Neill  did you find a company yet? Did you close yet?  Let us know how things are going 

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