How to find Property Management Co. for a remote deal?

Question

I'm interested in doing a decently sized (80-120 units) deal in Central/North FL. I wanted to know what you guys think would be the best way to source, vet, and ultimately find a good management team. Considering that I'll be living in a different state (I do plan on being on the ground as often as I can), it's important to me that this team is the best that I can find. Any help and tips would be greatly appreciated

Drew Sygit · Answer

In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Landlords mistakenly ASSUME all PMCs offer the exact same services and operate the exact same way, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services.

This also leads them to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it.

We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Davartay Miller · Answer

David,

I typically tell clients that there's nothing better than word of mouth. Most times, when a lead calls our office it's because they were referred by their best-friend, business partner, mentor, mentee, colleague, etc. Why is that? It's simple. People want to hear from those experiencing what they are trying sell you – personally.

I would recommend you search multi-family property management in the search field above and see what populates. If you see there's an investor in the Florida area .... perhaps he or she could connect you with a realtor, closing attorney, lender, and other professionals in the area. If all fails, please consider reaching out to those representing the seller online and see what company/individual is currently managing the units prior to the sales transaction.... this could give you some great insight.

While I might not have any Central/North FL property managers in my directory... You are definitely on the right platform. Do you have a particular city in mind? If you reply to this thread with the identified cities – perhaps it will trigger the keywords for those in that area who could join the post.

Best of Luck!

How to find Property Management Co. for a remote deal?

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