Connecting with Landlords who Hired Property Managers
Duluth, GA · Member since 2017 · 9 posts · 3 votes
Connecting with Landlords who Hired Property Managers
Most Popular Reply
Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
3yThe issue with third-party property management and single-family residences is that management can be very expensive. You are typically paying 10% plus repairs, leasing fees, etc. It makes it hard to cashflow unless you have no debt. If you just have one condo and you have a good handyman in the area; I might just manage it myself. The PM is really just making calls to their handyman when there is an issue. Have your tenant mail the check to you or have them do it online and it is very easy. You will also need a real estate agent on the ground to lease the unit when tenants move. It just depends if you care to coordinate things and check on the property here and there. The more units you have, the more I would suggest a PM.
24 Replies
- Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes3y
The issue with third-party property management and single-family residences is that management can be very expensive. You are typically paying 10% plus repairs, leasing fees, etc. It makes it hard to cashflow unless you have no debt. If you just have one condo and you have a good handyman in the area; I might just manage it myself. The PM is really just making calls to their handyman when there is an issue. Have your tenant mail the check to you or have them do it online and it is very easy. You will also need a real estate agent on the ground to lease the unit when tenants move. It just depends if you care to coordinate things and check on the property here and there. The more units you have, the more I would suggest a PM.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Charles Carillo:
The issue with third-party property management and single-family residences is that management can be very expensive. You are typically paying 10% plus repairs, leasing fees, etc. It makes it hard to cashflow unless you have no debt. If you just have one condo and you have a good handyman in the area; I might just manage it myself. The PM is really just making calls to their handyman when there is an issue. Have your tenant mail the check to you or have them do it online and it is very easy. You will also need a real estate agent on the ground to lease the unit when tenants move. It just depends if you care to coordinate things and check on the property here and there. The more units you have, the more I would suggest a PM.
How much will it cost when things go south, No rent payment, have to evict, months vacant, getting ripped off for repairs etc. Having an experienced PM is like owning a gun, you hope you never need it but man you are happy to have it when you do .
- Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes3y
Quote from @Bob S.:
Quote from @Charles Carillo:
The issue with third-party property management and single-family residences is that management can be very expensive. You are typically paying 10% plus repairs, leasing fees, etc. It makes it hard to cashflow unless you have no debt. If you just have one condo and you have a good handyman in the area; I might just manage it myself. The PM is really just making calls to their handyman when there is an issue. Have your tenant mail the check to you or have them do it online and it is very easy. You will also need a real estate agent on the ground to lease the unit when tenants move. It just depends if you care to coordinate things and check on the property here and there. The more units you have, the more I would suggest a PM.
How much will it cost when things go south, No rent payment, have to evict, months vacant, getting ripped off for repairs etc. Having an experienced PM is like owning a gun, you hope you never need it but man you are happy to have it when you do .
As I mentioned, if you have a "good" handyman (one that will not rip you off) on the ground I would suggest self-managing. If you don't then you might consider a PM. If you self-manage it or if there is a PM; someone is going to hire an eviction attorney if a tenant does not pay. It would just be up to the owner when that call should be made instead of the PM.
- 3yGreg WeikBusiness MemberProperty Manager · Denver, CO · Member since 2020 · 263 posts · 327 votes
@Amal Bhatnagar, I think you are wise to seek out professional management. Yes, it costs money.
But the residential property management industry is a multi-billion dollar industry, not because as @Charles Carillo puts it "they are just calling their own handyman" but because there is incredible value to be added when you hire a good PM.
-PM Leasing - should not be done by a "realtor on the ground." They will have no idea what they are doing, what they are looking for, or likely the laws surrounding credit reporting.
-PM Marketing - should be good enough to reduce days on market significantly.
-PM Turnover processes - again, designed around reducing days on market and limiting landlord exposure/liability.
-PM -The lease itself - you're unlikely to have a bomb-proof lease if you buy it online. PMs know what needs to be in the lease, and that constantly changes with legislation.
-PM -Cashflow - people hire PMs specifically to INCREASE cash flow, not to decrease it. It's not a luxury, any more than hiring and paying a CPA or an Attorney are luxuries. Good PM makes you more money than you could on your own.
But to your question - I would check Google Reviews as a good starting point. Check out all of them for a company and try to see if a pattern emerges. Are they consistently accused of being unresponsive? Are they consistently praised for renting properties quickly? Do they respond to their reviews? The company culture matters, that's a big part of what you're hiring.
Real Estate Solutions4.4389 Reviews - Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Charles Carillo:
Quote from @Bob S.:
Quote from @Charles Carillo:
The issue with third-party property management and single-family residences is that management can be very expensive. You are typically paying 10% plus repairs, leasing fees, etc. It makes it hard to cashflow unless you have no debt. If you just have one condo and you have a good handyman in the area; I might just manage it myself. The PM is really just making calls to their handyman when there is an issue. Have your tenant mail the check to you or have them do it online and it is very easy. You will also need a real estate agent on the ground to lease the unit when tenants move. It just depends if you care to coordinate things and check on the property here and there. The more units you have, the more I would suggest a PM.
How much will it cost when things go south, No rent payment, have to evict, months vacant, getting ripped off for repairs etc. Having an experienced PM is like owning a gun, you hope you never need it but man you are happy to have it when you do .
As I mentioned, if you have a "good" handyman (one that will not rip you off) on the ground I would suggest self-managing. If you don't then you might consider a PM. If you self-manage it or if there is a PM; someone is going to hire an eviction attorney if a tenant does not pay. It would just be up to the owner when that call should be made instead of the PM.
All do respect it does not seem as though you have a lot of experience. I have done 1ks of move in and outs, dealt with 100s of tenants over the years, If you think just hiring an attorney is going to solve your problems sorry you are mistaken. Now granted I have done all my business in the Cleveland markets which is one of the toughest markets to work in so I am a bit jaded. If you do not have a good PM you will get crushed. I cant tell you how many people come to me in these forums to " bail them out "
I wish you all the best,
- Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes3y
Yes, @Greg Weik if the owner does not want to handle anything; they should hire a property manager. As I mentioned in my post, if they have trusted people on the ground AND they do not mind coordinating; they can avoid hiring a property manager. Let's also remember that @Amal Bhatnagar has one condo; not a portfolio of single-family houses. Most, if not all of their exterior maintenance is already handled; that cuts down dramatically on the contractors required and the property manager will not have to stop by to review the exterior of the property.
When I have self-managed small properties from a distance; my handyman would go over and handle repairs. I had a real estate agent list the units for rent, meet the tenants, complete an application, run background checks and finally sign my lease (that my attorney drafted for me previously).
Renting a condo does not take a full marketing plan. I literally had a saved ad on Zillow that I would turn on when it was vacant ($10) and turn off when it was rented. It was never vacant for more than 10-14 days.
If you do not have a couple of trusted people on the ground, hire a PM. But, if you have some people you have worked with; you might be able to self-manage. You can always hire a manager whenever you want.
- Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes3y
Quote from @Bob S.:
Quote from @Charles Carillo:
Quote from @Bob S.:
Quote from @Charles Carillo:
The issue with third-party property management and single-family residences is that management can be very expensive. You are typically paying 10% plus repairs, leasing fees, etc. It makes it hard to cashflow unless you have no debt. If you just have one condo and you have a good handyman in the area; I might just manage it myself. The PM is really just making calls to their handyman when there is an issue. Have your tenant mail the check to you or have them do it online and it is very easy. You will also need a real estate agent on the ground to lease the unit when tenants move. It just depends if you care to coordinate things and check on the property here and there. The more units you have, the more I would suggest a PM.
How much will it cost when things go south, No rent payment, have to evict, months vacant, getting ripped off for repairs etc. Having an experienced PM is like owning a gun, you hope you never need it but man you are happy to have it when you do .
As I mentioned, if you have a "good" handyman (one that will not rip you off) on the ground I would suggest self-managing. If you don't then you might consider a PM. If you self-manage it or if there is a PM; someone is going to hire an eviction attorney if a tenant does not pay. It would just be up to the owner when that call should be made instead of the PM.
All do respect it does not seem as though you have a lot of experience. I have done 1ks of move in and outs, dealt with 100s of tenants over the years, If you think just hiring an attorney is going to solve your problems sorry you are mistaken. Now granted I have done all my business in the Cleveland markets which is one of the toughest markets to work in so I am a bit jaded. If you do not have a good PM you will get crushed. I cant tell you how many people come to me in these forums to " bail them out "
I wish you all the best,
I have self-managed many properties for several years and have had third party managers manage our apartment complexes since 2012. There is nothing wrong with property managers however; this person has a condo. A single condo. My point is that not every property requires professional management (if the owner doesn't mind handling some things). Yes, we are not going to self-manage a 100+ apartment complex but, someone that has the time, has trusted contacts on the ground, and has some knowledge of dealing with tenants and contractors, can self-manage a single condo. People talk about doing it on BP all the time.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3ySefl managing is a NIGHMAARE for those with no experience, However get your point. I am currently chatting with someone that is self-managing and its a disaster after only two months. This guy did NOT collect SD he put the tenant on a payment plan for it , are you kidding!!! The tenant has not even paid the 2nd months' rent and seems like a real jerk based on the post this person wrote. Now he has months of lost rent, NO back up money and stress, ONLY one property but see 1ks and 1ks and 1ks of loses and stress that 100% could have been avoided.
Quote from @Charles Carillo:
Quote from @Bob S.:
Quote from @Charles Carillo:
Quote from @Bob S.:
Quote from @Charles Carillo:
The issue with third-party property management and single-family residences is that management can be very expensive. You are typically paying 10% plus repairs, leasing fees, etc. It makes it hard to cashflow unless you have no debt. If you just have one condo and you have a good handyman in the area; I might just manage it myself. The PM is really just making calls to their handyman when there is an issue. Have your tenant mail the check to you or have them do it online and it is very easy. You will also need a real estate agent on the ground to lease the unit when tenants move. It just depends if you care to coordinate things and check on the property here and there. The more units you have, the more I would suggest a PM.
How much will it cost when things go south, No rent payment, have to evict, months vacant, getting ripped off for repairs etc. Having an experienced PM is like owning a gun, you hope you never need it but man you are happy to have it when you do .
As I mentioned, if you have a "good" handyman (one that will not rip you off) on the ground I would suggest self-managing. If you don't then you might consider a PM. If you self-manage it or if there is a PM; someone is going to hire an eviction attorney if a tenant does not pay. It would just be up to the owner when that call should be made instead of the PM.
All do respect it does not seem as though you have a lot of experience. I have done 1ks of move in and outs, dealt with 100s of tenants over the years, If you think just hiring an attorney is going to solve your problems sorry you are mistaken. Now granted I have done all my business in the Cleveland markets which is one of the toughest markets to work in so I am a bit jaded. If you do not have a good PM you will get crushed. I cant tell you how many people come to me in these forums to " bail them out "
I wish you all the best,
I have self-managed many properties for several years and have had third party managers manage our apartment complexes since 2012. There is nothing wrong with property managers however; this person has a condo. A single condo. My point is that not every property requires professional management (if the owner doesn't mind handling some things). Yes, we are not going to self-manage a 100+ apartment complex but, someone that has the time, has trusted contacts on the ground, and has some knowledge of dealing with tenants and contractors, can self-manage a single condo. People talk about doing it on BP all the time.
All the best - Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 378 votes3y
A good property manager is worth their weight in gold! Yeah, some companies may be more expensive but if they are doing their job correctly, then I am willing to pay extra to get quality. A good PM can be hard to find, my biggest want in a PM is communication. I'm not saying call me every time someone needs a lightbulb changed but I do want a weekly or bi-weekly emails just giving updates.
- Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes3y
Quote from @Bob S.:
Sefl managing is a NIGHMAARE for those with no experience, However get your point. I am currently chatting with someone that is self-managing and its a disaster after only two months. This guy did NOT collect SD he put the tenant on a payment plan for it , are you kidding!!! The tenant has not even paid the 2nd months' rent and seems like a real jerk based on the post this person wrote. Now he has months of lost rent, NO back up money and stress, ONLY one property but see 1ks and 1ks and 1ks of loses and stress that 100% could have been avoided.Quote from @Charles Carillo:
Quote from @Bob S.:
Quote from @Charles Carillo:
Quote from @Bob S.:
Quote from @Charles Carillo:
The issue with third-party property management and single-family residences is that management can be very expensive. You are typically paying 10% plus repairs, leasing fees, etc. It makes it hard to cashflow unless you have no debt. If you just have one condo and you have a good handyman in the area; I might just manage it myself. The PM is really just making calls to their handyman when there is an issue. Have your tenant mail the check to you or have them do it online and it is very easy. You will also need a real estate agent on the ground to lease the unit when tenants move. It just depends if you care to coordinate things and check on the property here and there. The more units you have, the more I would suggest a PM.
How much will it cost when things go south, No rent payment, have to evict, months vacant, getting ripped off for repairs etc. Having an experienced PM is like owning a gun, you hope you never need it but man you are happy to have it when you do .
As I mentioned, if you have a "good" handyman (one that will not rip you off) on the ground I would suggest self-managing. If you don't then you might consider a PM. If you self-manage it or if there is a PM; someone is going to hire an eviction attorney if a tenant does not pay. It would just be up to the owner when that call should be made instead of the PM.
All do respect it does not seem as though you have a lot of experience. I have done 1ks of move in and outs, dealt with 100s of tenants over the years, If you think just hiring an attorney is going to solve your problems sorry you are mistaken. Now granted I have done all my business in the Cleveland markets which is one of the toughest markets to work in so I am a bit jaded. If you do not have a good PM you will get crushed. I cant tell you how many people come to me in these forums to " bail them out "
I wish you all the best,
I have self-managed many properties for several years and have had third party managers manage our apartment complexes since 2012. There is nothing wrong with property managers however; this person has a condo. A single condo. My point is that not every property requires professional management (if the owner doesn't mind handling some things). Yes, we are not going to self-manage a 100+ apartment complex but, someone that has the time, has trusted contacts on the ground, and has some knowledge of dealing with tenants and contractors, can self-manage a single condo. People talk about doing it on BP all the time.
All the bestYes, self-managing is not for everyone.
- 3yPhillip AustinPro MemberProperty Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
@Amal Bhatnagar If you only have one condo and don't mind the occasional tenant call or maintenance request, I would recommend utilizing a property management company that offers what we call "lease-only" services. Many companies offer to lease your unit from beginning to end including screening applicants, showing the vacant unit, moving in a qualified tenant, then handing you over an executed lease with a qualified tenant. You then manage the day-to-day until it's time to find another tenant. Companies typically only charge a higher leasing fee, say 80% of monthly rent.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3yAloha,
A key reason many new or relatively inexperienced investor should be considering a PM, is simple...KNOWLEDGE. There are so many rules and regulations that if not followed, can cost you far more than any PM fees. It is surprising how many BP posts are about very basic info- local LL/Tenant laws and Real Estate licensing laws; IRS rules; Fair Credit Reporting laws (that affect anyone that is approving/denying rental applications); EPA rules regarding lead paint, asbestos, waste handling, runoff, and more; Worker's Compensation (insurance) laws; OSHA safety rules; contract law basics; Accounting best practices; HOA rules, budgeting, and reserves; Building codes/permitting rules; and plenty of local ordinances. A legitimate, experienced PM should be on top of current rules and regulations, and have a source for answering questions (usually an attorney). In most states, your PM is licensed and may also be a Realtor. As such, they are required to take classes that keep them updated to changes in the law, and if they do not follow the laws, they can lose their license or face disciplinary action. An unlicensed investor has less incentive to self educate and generally fewer known resources to keep informed. The fines that can result from violating many of these rules can easily be thousands of dollars. What will that do to your profits?
You DO need to make sure that PM is a PRIMARY function of the company. There are lots of Sales people willing to take PM "on the side". They typically make their living from the sales commissions, so guess what takes priority? If the company has a separate team dedicated to PM, or if they have a substantial number of rental units they have managed over a number of years, then they should have solid systems in place that you can inquire about.
Consider this: As an investor, let's say you have accumulated 10 rentals over a 10 year period, 1 per year. You would have 660 unit/months of experience. Compare that to a PM that has been managing 100 units for that same 10 year period... who has 12,000 unit/months of experience. - 3yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
a good PMC is like insurance, you regret not having it when something goes wrong.
Logical Property Management4.9458 Reviews - Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
Liability and peace of mind. I don't need to spend my time scheduling contractors and reading up on the landlord and tenant laws.
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
It's no secret that Real Estate investment isn't without its risks, and the costs of things going wrong can be huge. When a tenant fails to pay rent, or leaves a property vacant for months on end, or repairs are ripped off - having an experienced Property Manager is like having your own personal bodyguard. While you might hope that you never have to use them, it's good peace of mind knowing they're there if you need them! From financial records to eviction processes, the cost of their expertise will prove invaluable in tricky situations. It pays to invest in a Property Manager who can handle all your Real Estate needs with confidence and skill.
- Rental Property Investor · Member since 2021 · 120 posts · 69 votes3y
hey Amal. You'll get all different thoughts and advice from all different people. I'll just give you my 2 cents from my personal experience. My first investment property was out of state, so I was a little nervous just trusting people over the phone. However, when I found out the real estate brokerage who helped me buy the house also offered PM services, I jumped on it. I still looked into them and asked a billion questions (just google good questions to ask PM before hiring them and pick out the ones important to you), but they did so well being my agent I knew they would take care of me in PM as well. I'd say find a good local realtor and ask if they know any PM, or if their brokerage offers it (most around me offer that service). They handle everything from rent collection to repairs that come up. I only get a call if its going to cost me money. Even better than that, they do inspections on the properties to make sure the tenants aren't wrecking the house - which is above and beyond what I was looking for. I never need to worry about rent being collected; and if tenants miss rent, the PM even files the eviction for me. Money hits my account every month and I don't have to worry about a thing. I say go for it. Good luck!
- Real Estate Broker · Cleveland, OH · Member since 2018 · 227 posts · 133 votes3y
Lots of great advice on here! After working at several large property management companies in the Cleveland market I can tell you not to trust their reviews. A lot of these companies manipulate their reviews by having their employees seek out positive reviews for cash incentives, so it's a lot of positive customer service reviews from customers being repeatedly asked to leave a review after every mundane interaction, instead of telling the true story about the company's competency instead of something they're trying to manipulate to look better.
Also, I would ask about how many employees they have in key positions like how many leasing agents, maintenance staff, maintenance coordinators, ect. Because property management software can do so many things, these companies will work with the least amount of staff they can get away with. While that's business, it's not good business when they have one leasing agent for 50 properties and one maintenance coordinator who is 3 weeks behind on emails and looks like they're going to quit at any moment. I've worked at several places like this and it's pretty common, so it's smart to try and dig a little deeper and see what these companies will tell you about how they run their business. - Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes3y
I have 1 SFR. Tenants have emailed 3 times the past 8 months. The 1st time was right after move in, no power to the electric stove, called the electrician who installed it, he arrived the next day to fix. The second time was garage door, they had a cobweb blocking the sensor. They figured it out within hours, by the time I got the handyman to go check it out. The 3rd time was a malfunctioning water heater, since heater was already 15 years old I simply called my trusted plumber to go install a new one.
I collect rent payments online via Avail and it will send late payment letters if they are late and perhaps also charge late fee(no late payments so not sure about this feature). I will hire an attorney if I ever need to get someone evicted.
Handyman will do the yearly inspection. I advertised on Zillow and Avail to get and screen applicants and did showings myself to get it rented. Not sure if I am imagining things but it seems prospective tenants prefer listing from private parties vs PM companies.So far I do not see the need for me to hire a PM for this SFR.
- Detroit, MI · Member since 2022 · 118 posts · 49 votes3y
It's important to find a property management company who has good communication and experience in the industry. Partnering with a property manager who will be transparent with you and will help you maximize your investment is helpful!
- Realtor · Atlanta, GA · Member since 2022 · 2 posts · 0 votes3y
I sent you a message!
- 3yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
Nathan put up a good link about the NARPM org. I did my diligence on that, I don't know if it'll pan out but guess we'll see. I talked to about 4, got all the rules, and picked the one I am most confident in. I look at how the cash flows, how maintenance is communicated and paid for, their tenant screening, their lease lengths and terms, their experience, and then their reviews too. Among other things also like how can they screw me. I hope I did not pick wrong.
- 3yPhillip AustinPro MemberProperty Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
Quote from @V.G Jason:
Nathan put up a good link about the NARPM org. I did my diligence on that, I don't know if it'll pan out but guess we'll see. I talked to about 4, got all the rules, and picked the one I am most confident in. I look at how the cash flows, how maintenance is communicated and paid for, their tenant screening, their lease lengths and terms, their experience, and then their reviews too. Among other things also like how can they screw me. I hope I did not pick wrong.
NARPM is one of the best resources when searching for professional PM.
@V.G Jason Create a thread and share your experience with your new PM! I'd love to hear your feedback, specifically their strengths and weaknesses. - Member since 2021 · 240 posts · 300 votes3y
I've been managing my one rental for 4 years. 95% of the time there is no issues. I'm having work done on the exterior of the property, and my tenant who has been great at paying on time, is being a nightmare. Yelling at me and the crew working, demanding compensation, etc. Threatening to come back and tell my next tenants how bad it has been and posting negative reviews on the contractor's site. I will be using a PM starting in March when the current tenant moves out, and rent will be raised (if I don't sell). The increase in rent will offset the PM cost hopefully. I met with 2 after getting referrals on Facebook. I met with them and went over their costs (basically the same). I picked one over the other based on our meeting and personality. I'm not an expert on all property management laws which is why it's more of a headache for me. It's worth the peace of mind to hire a PM and not have to have direct contact with a tenant anymore.
- 3yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votesAll I did was hire them. There's no experience yet.
Quote from @Phillip Austin:
Quote from @V.G Jason:
Nathan put up a good link about the NARPM org. I did my diligence on that, I don't know if it'll pan out but guess we'll see. I talked to about 4, got all the rules, and picked the one I am most confident in. I look at how the cash flows, how maintenance is communicated and paid for, their tenant screening, their lease lengths and terms, their experience, and then their reviews too. Among other things also like how can they screw me. I hope I did not pick wrong.
NARPM is one of the best resources when searching for professional PM.
@V.G Jason Create a thread and share your experience with your new PM! I'd love to hear your feedback, specifically their strengths and weaknesses.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.