Property Management Companies - Any recommendations ?

Question

Hello Local BP community

I have just 1 SF residence in the Indianapolis area inside the I-465 loop. I am looking for recommendations for a PM - preferably if some one has personal experience with them. Community only allows 6 m or longer leases. Thank you in advance !

Michael Smythe · Answer

@Nadeem Najam

We’re a Property Management Company (PMC), with 25+ years of experience, and we’ve seen owners make the same mistakes, over & over again when looking to hire a PMC – which drives us nuts!.

In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.

So, owners mistakenly think price is the only differentiator – and look for a PMC like they’d shop for groceries☹

We encourage you to learn from the mistakes of others by reading posts here on BiggerPockets from owners that picked a PMC solely by price and regretted it.

We recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.

Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.

Even if someone gives you a referral, do NOT make the mistake of assuming that just because a PMC met their expectations, they’ll meet your expectations. We all have our own expectations and what works for someone else, may not work for you.

If you’re new to all of this, it's often a case of not doing enough research, as you don't know what you don't know!

So, ask more questions!

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!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

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😊

Here’s some articles we’ve contributed to BiggerPockets about screening a PMC BETTER than you would a tenant!

20 Questions to Ask When Vetting a Property Management Company: Processes

13 Questions to Ask to a PMC: Communication and Documentation

24 Questions to Ask When Evaluating a Property Management Contract

Nadeem Najam · Answer

Thanks for your reply @Josh C. I did check out your website. Prices seem low. Are you able to provide a sample of your contract pls ?

Josh C. · Answer

@Nadeem Najam

We are a mid sized firm in Indianapolis focusing on single family and small and mid sized multi family. Our office is in the heart of Indianapolis where all the tenants live. :) check us out CityPlaceIndy.com

Inside the loop can be great for rentals (100% of my portfolio is there) however, some areas to stay clear of as well. Especially, for out of state folks. Really can change quickly there. Feel free to reach out to talk strategy.

David Treat · Answer

@Nadeem Najam yes our office is located in Carmel, IN just north of Keystone at the Crossing. Our Business Developer Director Erik would be happy to assist you, can you email him your contact information at: erik@indianapolispropertymanagement.com

Nadeem Najam · Answer

Yes that would be @David Treat. I understand why the language is used but at least to me an act outside of our control would hold true for anyone trying to do their job. It just seems strange at lease to me. BTW do you have a local office in Indy ?

David Treat · Answer

That’s a great question @Nadeem Najam and you’re not alone in noticing that language. Clauses like “PM will not be held responsible for something done knowingly or otherwise” can definitely feel strange. What they’re usually trying to do is limit the management company’s liability for things outside of their control (for example, tenant behavior, acts of nature, or vendor mistakes). I would like to send you a sample of how we handle this clause in our agreements, so you can compare. is that ok?

Nadeem Najam · Answer

Thank you for the replies so far.

One thing which I am surprised to see going over PMC contracts is a clause which goes something like: "PM will NOT be held responsible for something done knowingly or otherwise". Does this look strange just to me ?

I mean if you go to a dentist and they do not perform to the standards, why should they not be held responsible ? Would the same not apply to PM ? Is this supposed to be a red flag ?

David Treat · Answer

Morning @Nadeem Najam we specialize in single family and multi family in indianapolis. I would like to schedule an opportunity to discuss more over a 10 minute discovery call. You can reach me directly at 317-790-5713 or erik@indianapolispropertymanagement.com. ES Property Management provides peace of mine, no hidden fees, and streamline communication from all staff members insuring everyone is one the same page regarding your properties.

Property Management Companies - Any recommendations ?

Property Management Companies - Any recommendations ?

Most Popular Reply

8 Replies