Rental Property Investor · Charlotte, NC · Member since 2013 · 22 posts · 9 votes
I've been looking for a PM firm recently and noticed that reviews and star-ratings can be tricky. For example, this company Alarca has TONS of 5-star reviews. But when I started looking at the reviews, many had either no message or were very short. And many came from the Philippines, and had a similar emoji pattern at the end. When I click on their profiles, most of the time their only review is for this company. Is this Charlotte-based PM firm servicing several people from the Philippines every single day who all post the same way? Very frustrating when you're trying to look for good information.
What are some ways to get accurate information about PM firms? Yes you can ask for references, but obviously the company is self-selecting which clients to send your way.
I never look at reviews for a property management company. I want referrals and investors who have been working with them to get their opinion, as some of the reviews could be from tenants and not clients.
I never look at reviews for a property management company. I want referrals and investors who have been working with them to get their opinion, as some of the reviews could be from tenants and not clients.
I never look at reviews for a property management company. I want referrals and investors who have been working with them to get their opinion, as some of the reviews could be from tenants and not clients.
I think referrals are objectively superior to online reviews, and if a company can't provide some, that's a huge red flag. However, it's just testing if they have 2-3 clients in their entire portfolio that like them, which is a pretty low bar. I'm not really sure how to improve that though, as there's no way to get a random client/investor to talk to from their client list.
I agree that speaking with the owners and investors they manage. The responses to the actual real reviews are often much more insightful than the ratings themselves.
Tenant reviews can skew things negatively, while some companies clearly inflate the positive side. What’s worked best for a lot of investors is talking directly to other owners in the same market and asking specific questions about vacancy time, maintenance handling, communication, and surprise fees. A good PM usually stands out pretty quickly in conversation, too. Strong operators tend to have clear systems and direct answers instead of vague sales talk.
I've been looking for a PM firm recently and noticed that reviews and star-ratings can be tricky. For example, this company Alarca has TONS of 5-star reviews. But when I started looking at the reviews, many had either no message or were very short. And many came from the Philippines, and had a similar emoji pattern at the end. When I click on their profiles, most of the time their only review is for this company. Is this Charlotte-based PM firm servicing several people from the Philippines every single day who all post the same way? Very frustrating when you're trying to look for good information.
What are some ways to get accurate information about PM firms? Yes you can ask for references, but obviously the company is self-selecting which clients to send your way.
We’re a Property Management Company (PMC) in Metro Detroit ONLY, 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.
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!
One of my favorite questions is, "have you ever had to evict someone?" The correct answer is yes and the wrong answer is no. they should be able to tell you about the frustrations they had with a bad tenant. If they say, "i don't need to evict because I do such a good job screening" then they are lying.
Stay away from managers who smile or are too nice. also don't hire someone who cannot physically replace a wax ring. Don't hire a manager that doesn't own tools. If you go to their office and they have a make ready board that is being used, that's a very good sign!
You’re asking the right question because reviews only tell part of the story. I’d ask for sample owner statements, maintenance invoices, lease renewal reports, inspection examples, and a straight answer on whether they mark up maintenance. Also ask who you’ll actually talk to after you sign... not just the salesperson. The best PM companies are usually boring in the best way... clear reporting, consistent communication, and no surprises. If they get vague on process, that tells you a lot.
Hello and good afternoon - I currently run a property management company here in Charlotte and reviews are very tricky - to be honest - My owners love me and my tenants - depends. So my reviews are mixed. I deal with student housing alot by UNCCharlotte and the "kids" in my room rentals are not the biggest fan. So my honest transparent answer is mine are mixed. All genuine and not bought or manipulated in any way. So if you are comparing managing companies - find one that treats your investment like their own. We are out there....just sometimes hard to find. I am small so a majority of my clients have been with me for more than a decade. They get Christmas pictures of my kids. You want a management company that feels that way about business. At least - that's how I run my company - since 2013. Wishing you all the best...let me know if you want to chat!
