New Investor having challenges with Property Manager in Phoenix - any suggestions?

New Investor having challenges with Property Manager in Phoenix - any suggestions?

Tustin, CA · Member since 2013 · 2 posts · 0 votes

Hi all,

I just jumped into the world of Real Estate investing, and closed on my first home just over a week ago. I found a great house with recent renovations and a long term section 8 tenant paying good rent for reasonable cash flow. However, I am already having problems with the property management company I hired. The tenant had a clogged kitchen drain, and when she called in, was treated harshly by the person she talked to, told that the drain was "her fault," and if she wanted someone to come out, she would need to pay out of pocket. Totally unacceptable. I only found out because she called the previous landlord crying, and the previous landlord called me to talk about it.

I called the tenant to explain that I have every intention of treating her well, and that I will pay for all reasonable repairs. The tenant got a family member to fix it for $60, so I told her I would subtract that from her rent. The tenant has been there for almost three years, and I would love for her to stay there for a very long time. I am willing to pay somewhat higher repairs costs in order to make that happen and have her be treated well.

I told the same thing to my property management company. They said she spoke to one of their contracted maintenance companies since it was the weekend and that they no longer plan on doing business with that company. That is all fine and good, but I am now hesitant about them since there was already a problem just a week in. Their reviews on Google and Yelp are pretty mediocre with a number of 5 star reviews. But here's the thing: I looked up about 10 PM companies when I was researching, and they ALL have a number of bad reviews. Are all PM companies going to treat tenants like this? Does anyone have experience with any companies in the Phoenix area who treat tenants well? I'd be interested to hear what people who have been doing this way longer than me think about this.

Thanks!

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  • Property Manager · Rainier, OR · Member since 2013 · 26 posts · 3 votes
    12y

    My experience with PM is they are very liberal with maintenance requests. They usually have a small team of maintenance staff that they make a profit or mark up from each time they are used. The new trend is to demonstrate to a new tenant that the drains are working when they move in so any problems are caused by the tenant and therefore a tenant responsibility.

    Allowing a tenant to do repairs and deduct from the rent is a very slipery slope. Soon they will be making all manor of repairs, deducting from the rent and you will get nothing.

  • Tustin, CA · Member since 2013 · 2 posts · 0 votes
    12y

    I understand that I should not make it a standard practice to re-imburse tenants. But considering how they were treated, I feel like it was necessary to have a happy tenant.

  • Flipper/Rehabber · Phoenix, AZ · Member since 2015 · 29 posts · 9 votes
    10y
    Originally posted by @Alex Taubman:

    Hi all,

    I just jumped into the world of Real Estate investing, and closed on my first home just over a week ago. I found a great house with recent renovations and a long term section 8 tenant paying good rent for reasonable cash flow. However, I am already having problems with the property management company I hired. The tenant had a clogged kitchen drain, and when she called in, was treated harshly by the person she talked to, told that the drain was "her fault," and if she wanted someone to come out, she would need to pay out of pocket. Totally unacceptable. I only found out because she called the previous landlord crying, and the previous landlord called me to talk about it.

    I called the tenant to explain that I have every intention of treating her well, and that I will pay for all reasonable repairs. The tenant got a family member to fix it for $60, so I told her I would subtract that from her rent. The tenant has been there for almost three years, and I would love for her to stay there for a very long time. I am willing to pay somewhat higher repairs costs in order to make that happen and have her be treated well.

    I told the same thing to my property management company. They said she spoke to one of their contracted maintenance companies since it was the weekend and that they no longer plan on doing business with that company. That is all fine and good, but I am now hesitant about them since there was already a problem just a week in. Their reviews on Google and Yelp are pretty mediocre with a number of 5 star reviews. But here's the thing: I looked up about 10 PM companies when I was researching, and they ALL have a number of bad reviews. Are all PM companies going to treat tenants like this? Does anyone have experience with any companies in the Phoenix area who treat tenants well? I'd be interested to hear what people who have been doing this way longer than me think about this.

    Thanks!

     Hey Alex, are you still actively buying? send me text 602-882-8621, lets talk

  • Investor · Los Angeles, CA · Member since 2015 · 107 posts · 47 votes
    10y

    @Alex Taubman Sorry to hear of your troubles. Try reaching out to Dick Rosen. He's a property manager and a BP member out there in Phoenix. Hope this helps.

    @Dick Rosen

  • Rental Property Investor · Phoenix Tempe Scottsdale, AZ · Member since 2014 · 184 posts · 55 votes
    10y

    We self manage , I am not familiar with the section 8 requirements and what you are responsible for. 

    We use a local handyman in Northern AZ that runs all simple tasks like a clogged drain and would bill the tenant. 

  • Real Estate Investor · Tyrone, OK · Member since 2015 · 8 posts · 1 vote
    10y

    I'm one to handle my own maintenance issues at my rentals. If I can take care of it myself then that's money saved and money in my pocket. If it's above my level of ability to repair then I have a list of individuals who are reasonable priced and licensed and insured. 

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