Updated over 7 years ago on . Most recent reply
A bit helpless with property management not being too responsive
I didn't exactly know how to frame the subject header. In short, I am mostly an SFR and small multi unit investor (triplex, fourplex) and have about 10 of them in different markets, managed by different property management companies. For the most part, I am very happy with the service, some are better than others, but overall it's been working well. I bought last year my first commercial building, a 12 unit, and it has been very difficult since inception.
First year I had a management company that wasted a lot of money and caused me some large losses. I then switched to another one, which is orders of magnitude better. However, they still are not overly responsive and it's hard to actually get quick enough service. I feel like I have to beg for attention and walk on eggshells. I just entered the second year. Building was reassessed, so taxes went up, eating away at my non-existent to negative profit margin, and making this financially more precarious. It is a C class building - good and nice location for what it is, but primarily caters to lower income residents. It's all good, but they do tend to be cavalier about breaking leases and moving out whenever they feel like. Not trying to generalize here, simply talking from experience.
I actually bought the building for a reasonable price. Won't call it a deal, but the seller wanted out and we agreed on a fair price. It's in Cincinnati, and seems like the market got a lot hotter for apartments over there. My broker keeps telling me that if I want to sell, now would be a great time. Of course, he wants the commission, but according to what I'm seeing, I don't believe he's not being candid.
Also, I think in the mid run, like 3-5 years from now, there could be a real upside to this building in terms of rents. So I'm not necessarily 100% set on selling, but I have to admit that I'm getting tired of how things are going. I actually found a contractor that seems reasonable to work with, but even getting him access to any unit that has become vacant, seems like a chore, and sometimes there could be a 2 week delay before things happen. I am not interested in managing the building myself from afar, and I want to give this management company a chance, esp since they are far better than the former, yet at the same time I am tired of losing money every month, while everyone else makes something.
I'd love to know how anyone who found themselves in such scenario, have dealt with it. To be clear, I'm not here to bash prop management companies. I'm actually a big fan, and as mentioned above, have mostly very positive experiences. This is my outlier situation. Sorry if it sounds like a rant/vent.
Also, I'd appreciate if snide comments could be avoided. If you think I'm a terrible operator and I should sell to you, then I can assure you it will not happen, and you don't need to post it. Based on past experience here ;-)
Most Popular Reply
@Guy Azta first thing you need to do is ask your PM to put a LOCK BOX on the vacant units.
then each contractor can access the property when required without an need to have the PM there at the same time.
In regard to selling, it is probably a good time. But only you can make this decision.
Can i ask were are the properties located?