PM recommendations needed for Southside Chicago area

[Sarah Luu]

My post earlier post was deleted for being in the wrong category.

Looking for new PM for my 6 2-flats in Southside Chicago. I would like to interview as many as possible before making the switch.

I am also looking to sell the entire portfolio to an investor interested. DM me.

TIA

[John Warren]

@Sarah Luu if you want to sell them, why not list them and get them sold? I wouldn't engage a PM first since it will waste a lot of your time that could be spent on figuring out how to get the portfolio off your books, etc. 

If you do decide to hire a PM, I would connect with @Mark Ainley to see who he knows in the area. 

[Sarah Luu]

@John Warren it was just a thought. I've been selling them off one at time at higher prices so if I can find a good PM I can stick to that plan. If I come across a serious investor willing to take the entire portfolio I'm willing to sell. 

I've been talking to Mark and we both realized we chatted years ago as well. 

[Drew Sygit]

@Sarah Luu

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners 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!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners 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 14-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😊

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Also, if you like our response, please don’t be shy about giving us a vote😊

[John Warren]

@Sarah Luu have you also connected with @Jared Kott? He manages some buildings for clients of mine on the south side, and he and his team do a great job. 

[Sarah Luu]

@John Warren Yes, I've spoke with them. I'm looking at options before I make a decision. I've reached out to their manager to asking about their pricing but she hasn't gotten back to me. Would your clients be willing to talk to me. I'm trying to wrap my head around how they are making any money with the fees that are getting charged. 

[John Warren]

@Sarah Luu sure thing. My client owns in more of a B class area, so maybe that is how? Are you on the south side? Maybe look into a platform like secure pay one or something like that where you can still self-manage to some extent? I know full-service PM isn't free, and it can be tough to be profitable if you don't have a low basis/enough scale. 

[Sarah Luu]

@John Warren B is easier. C is too hard to self manage. I'm willing to pay but I feel like being nickel and dimed for small things is a bit much. Would appreciate talking to your client. TIA