Investor · Chula Vista, CA · Member since 2015 · 44 posts · 12 votes
So this is not really a debate on whether tk is for you or not but more along the lines of what would you ask these companies? Heres what I have so far:
How long have you been in business?
How many customers are repeat buyers?
Whats the average turnover rate ( for a specific area)?
Whats the average ROI per year (I get this is very subjective)?
Is property management in house?
These are just a few, feel free to chime in and add some.
I would add that the first thing I would ask is what is your strategy and what types of areas are you buying/selling in. Some buy in better areas some in worse, some will sell you at 100% of "value" some will sell at a slight discount. I would compare this with what you are comfortable with doing.
I would also ask:
1) Do they charge a leasing fee on top of the property management fee and if so does that fee roll over when someone signs a new lease or only to place it.
2) if they provide any type of guarantees and if not wht happened last time something went wrong (if they tell you nothing ever went wrong run far and fast unless they are really new).
3) if they can give you referrals.
4) What costs are excluded from their calculations. Some don't agree with calculations of say capex.
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