West Hempstead, NY · Member since 2017 · 37 posts · 7 votes
hello, quick context, I am in the midst of purchasing a 16 unit multifamily property, the property is located in Florida, I, however will reside New York, so I'll neee a diligent property management company to take care of everything for me while I'm in NY. Looking for the highest level of service at the lowest reasonable cost.
* How do I properly vet and select the right property managemenr company (not based on price or % but on actual service)?
* What are your recommendations for the percentages they charge, rental acquisition fees, or other PM fees?
* If applicable, do you have recommendations for PM companies within the St. Petersburg, Tampa, or Clearwater area?
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
9y
@Jesse Fernandez Here is a snippet of a blog i wrote about hiring a PM. Feel free to private message me for more info on property managers in the area of Tampa Bay.
Hiring a property manager is an important decision, and can be an asset for a property investor, but can also be a detriment if not chosen carefully and without some due diligence. Here are 10 tips on hiring a professional property manager:
1. Make sure that your property manager is a licensed Realtor or Broker, look them up on DBPR, the department of business & professional regulation.
2. Make sure their office is relatively close to your rental property. The farther it is, the harder it is to manage, show, find tenants, get vendors and inspect
3. Look at the experience of the Property Manager. They may not know the Fair Housing laws, take too long to fill the vacancy, have licensed vendors. How many units do they manage, or are they just doing this “on the side” for extra income.
4. What is their policy for dealing with evictions?
5. Are you willing to give up control? Most Professional Property Managers do everything; collect rent, schedule maintenance, pay taxes, pay mortgages & HOA dues, process security deposit claims, marketing , leasing , on call 24/7, handle landlord-tenant conflict. Its exhausting…..
6. Examine their management agreement, check to see if there is an out clause if you are dissatisfied, make sure it spells out the responsibilities of the owner and the property manager
7. What type of fees do they charge? Most companies will charge a management fee, leasing or placement fee and renewal fee. Ask if there are any any additional fees for maintenance, advertising, evictions, etc... and make sure they are outlined in the agreement. Do your homework, don't be fooled by low or flat management fees.
8. When and how will you receive your money each month? Will I receive a monthly statement?
9. Do they perform property inspections? What kind and how often?
10. How do they handle maintenance complaints or emergencies from tenants?
Property managers are great as a third party buffer or middle man, this is a business to us, it's not personal. Tenants understand they are dealing with a professional.
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
9y
@Jesse Fernandez Here is a snippet of a blog i wrote about hiring a PM. Feel free to private message me for more info on property managers in the area of Tampa Bay.
Hiring a property manager is an important decision, and can be an asset for a property investor, but can also be a detriment if not chosen carefully and without some due diligence. Here are 10 tips on hiring a professional property manager:
1. Make sure that your property manager is a licensed Realtor or Broker, look them up on DBPR, the department of business & professional regulation.
2. Make sure their office is relatively close to your rental property. The farther it is, the harder it is to manage, show, find tenants, get vendors and inspect
3. Look at the experience of the Property Manager. They may not know the Fair Housing laws, take too long to fill the vacancy, have licensed vendors. How many units do they manage, or are they just doing this “on the side” for extra income.
4. What is their policy for dealing with evictions?
5. Are you willing to give up control? Most Professional Property Managers do everything; collect rent, schedule maintenance, pay taxes, pay mortgages & HOA dues, process security deposit claims, marketing , leasing , on call 24/7, handle landlord-tenant conflict. Its exhausting…..
6. Examine their management agreement, check to see if there is an out clause if you are dissatisfied, make sure it spells out the responsibilities of the owner and the property manager
7. What type of fees do they charge? Most companies will charge a management fee, leasing or placement fee and renewal fee. Ask if there are any any additional fees for maintenance, advertising, evictions, etc... and make sure they are outlined in the agreement. Do your homework, don't be fooled by low or flat management fees.
8. When and how will you receive your money each month? Will I receive a monthly statement?
9. Do they perform property inspections? What kind and how often?
10. How do they handle maintenance complaints or emergencies from tenants?
Property managers are great as a third party buffer or middle man, this is a business to us, it's not personal. Tenants understand they are dealing with a professional.
Real Estate Agent · Sun City Center Fl · Member since 2013 · 48 posts · 8 votes
9y
I'm a licensed realtor with REMAX here in St Petersburg. We have a full service property management division. Be glad to speak with you about your needs. 7274700030
CPA · New York, NY · Member since 2016 · 203 posts · 132 votes
9y
@Jesse Fernandez I grew up on Long Island and also invest in Florida! I highly recommend @Jeff Copeland..reasonable rates and is extremely responsive. He manages 15 units for me.
Jesse, we own 400 units, none of which is nearby, so we use third party managers for everything.
@Kim Meredith Hampton provided some excellent information. I would also add a few suggestions, based on my experience.
1. Make sure that the PM has extensive experience managing precisely the same kind of property that you are buying, in terms of tenant profile, size, and market. I have learned from bitter experience that hiring a manager without the correct experience will lead to disaster. (In my case, I hired a manager with experience in affordable housing to manage a conventional property, and the manager had no idea how to market the property and keep it full.)
2. Find references on the PM that do not come from the PM itself. Ask around your network of investors to find out if anyone has had experience with the company. Vendors, too. Vendors will let you know if the PM has a reputation for paying bills on time. If they don't, it could be because they are not very good managers, and are not managing the property well enough to provide the cash flow necessary to pay the bills on time.
3. Find the other properties that they manage and research them in person and online. If you see a lot of complaints online about a property that the manager manages, it's a red flag you need to get to the bottom of. If you drive by a property they manage and you can see signs of poor management - landscaping not taken care of, garbage around the property that is not being picked up, etc., this is a red flag as well.
4. Ask to see the kind of financial reporting they will provide to see if it meets your requirements. They should be reporting to you regularly on occupancy and rental delinquency as well. Ask them what the average bad debt on their properties is. If it's higher than 2-3%, this means they are not getting the right tenants onto the property.
5. Find out how they screen tenants. This is really critical because getting the right tenants onto the property in the first place is what will determine how successful the investment is.
Finally, you have to remember that, even when there is a property manager in place, you are now the asset manager, which means it's your job to make sure that the property manager is doing its job correctly. If something doesn't seem right to you in what they are doing, you have to speak up.
