Lender · Scottsdale, AZ · Member since 2016 · 37 posts · 9 votes
I started investing in residential real estate in 2017 by purchasing 3 properties from 3 different turnkey providers in the midwest. Two of the turnkey providers operate their own property management company. These two turnkey provider PM handled all the utilities while the properties were vacant, which was great. The turnkey provider that does not own and operate the property management company, is pretty much "hands off". I had to put the utilities in my name and although it isn't a big deal, it is just extra work that was nice not having to mess with.
Lender · Scottsdale, AZ · Member since 2016 · 37 posts · 9 votes
8y
Thanks Caleb,
To clarify, the 2 turnkey providers that own and operate their property management company took care of the utilities while it was vacant and didn't bother me with them. Are you saying it is unusual for a turnkey provider who owns and operates the property management company to take care of the utilities for the investor while it is vacant?
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
Unless I’m missing something and you own it, yes I would find that abnormal.
Your utilities should be very little if anything if it’s vacant. A typical vacancy is probably 30-45 days, depending on the market
Real Estate Agent · Ankeny IA · Member since 2015 · 89 posts · 34 votes
8y
If I'm understanding you correctly your PM is just putting the utilities into their names on the 2 properties as to eliminate hassle for you. I'm also assuming that if/when you have a vacancy in either property that they are managing they are absorbing the cost. I'd also assume that as soon as the units are rented they will be taking the utility payments out of the rents. The other PM you are using might not be large enough to absorb those debts or just simply doesn't operate that way. I'm from the Midwest and I've never heard any of the local PM companies putting utilities into their names for the reason that they are there to find and manage tenants but not to make sure your lights stay on.
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
8y
@Eddie Knoell As a courtesy I will transfer the utilities over to my company when the property becomes vacant. I don't usually do gas or water, but I will transfer electric. But I do bill the landlord for any utility bills.
Bronx, NY · Member since 2014 · 25 posts · 34 votes
8y
For TKs I've purchased, the pm's have always handled the logistics of utilities when vacant - put it in their name and paid it out of maintenance reserve or charged me back for it along with turnover costs.
You have left out a details, including what city this is, how much you pay them and how many doors they have under management, which can help determine what 'typical' services they might provide. What fee do they get to place a new tenant? As suggested, perhaps they are too small to operate in a true hands-off fashion.
Perhaps time to make a PM switch? Are you happy with them otherwise? Make sure in your PM agreement you have the ability to cancel with 30 days notice so if you become unhappy with something you are not stuck.
Charleston, WV · Member since 2017 · 113 posts · 50 votes
8y
I wouldn’t be too quick to drop a PM because you have to write a couple checks a month. Good PM are hard to find. Have you asked them if they would assist?