Has ANYONE had success with a property management company?

Question

I continually read about how bad they are, and understandably so.  However, has anyone actually had a positive experience with a PM company?  Or is this a notion that is just bad all the way around?

Thanks
Fred

Stephanie Hunt · Answer

This is how I feed my family.  I have worked as a Property Manager for property management companies and private investors for over 10 years.

Although I have had experience with some shady pm companies, for the most part they are very successful and great tools for investors.

I do everything for my investors, I see it as the more money I can put in their pockets the more they put in mine!  Plus, the success of the investor that is using me as their pm is a direct reflection on me.  I am success driven therefore strive to make my investors money!

Jonathan Newman · Answer

I think you SHOULD contact them and relay your experience with their chosen PM.  You can earn 10% and give them more than their 10% back.  Win-win as I see it.  You better move before it rents!

Eric Wang · Answer

I have a good example.  I rent my 1/1 for $1250 includes garbage and water.  The new owner of the rental next door has a 1/1 for rent, same layout as mine.  I was just curious how much they were renting it for.  So I call, $975 includes water.  I knew I was on the aggressive side but I knew I could get $1250 for my area.  The lady didn't sound too nice or sound interested in talking to me.  I was curious who owned the property, I went to county website, turns out 4 people owns the property, google their name, all doctors.  Their only source of advertising was a for rent sign on the window.  I was telling my wife, I should call them and ask if they would like my service as their PM, cause I know can get more rent!

Account Closed · Answer

Fred,

Be careful taking in as fact everything you hear. Most people will tell you that US house prices are crashing while the facts show otherwise.

I use a project manager for most of my rentals. Not one project manager but a number of them. The rentals are spread over 11 time zones so there is no way one manager would work.

I have had some bad ones and I tend to hang on very tightly to the good ones.

It depends on your strategy and what you are good at in terms of REI.

I find that I do better finding and setting up the deals. I am not the best person to manage a property. Not bad, but not the best. More important is the fact that I have limited time. I can make more money putting my time into other things than I can save by being the property manager.

Some PMs are real estate sales agents who are filling in their spare time managing property when sales are slow.  My PMs do nothing other than manage rentals.

Ramon Allones · Answer

when working with a pm company, remember, "the squeaky wheel gets the grease".

let them know you are on top of things and reviewing the financial reports. question them on expenses etc, etc.

Alot depends on the individual property manager, even if the company is good and has a good reputation.

If you are looking for cost savings, this is not the way to go.  But if you don't know what how to do it, or don't want to spend the time to learn, then you got to pay the cost.

Fred Shandler · Answer

^good post...anyone else?

Daniel Lucas · Answer

There are TONS of property management companies. If none of them worked, no one would use them and they would be out of business.

www.irem.org states that there are 27 CPMs in Baltimore, MD.

Do the math. Educate yourself about property management and how to find one that is right for YOUR property.

I know some investors who use CPMs and still make a handsome profit. It has to be built into the operating expenses along with everything else.

Richard F. · Answer

As a PM, companies I have worked for over the years have had 100's  of clients whose properties we managed for 10 years or longer. I must assume they felt their investment was meeting goal. These clients were local, out-of-state, and international. The properties have been a mix of mostly average middle class type rentals, although certainly some slums and luxury in the mix at various points. Some of the management companies had in-house maintenance, some relied on outside vendors.

Of course, I have also watched a fair number of clients go under as well. Usually, this was the result of buying a property under false assumptions- rents projected too high, expenses too low...typical newbie mistakes. Some of these purchases were even made in spite of our warnings of potential (usually maintenance) issues. Sometimes, however, they simply did not have sufficient capital to address important issues in a timely manner. No Planning.

If you want to be successful using a PM, first of all you have to find a QUALIFIED company. As I have stated numerous times in the past, just because someone has a license to SELL real estate, does not mean they are capable or knowledgeable about MANAGING real estate. You need to establish a good working relationship, maintain good communication, and discuss strategies and procedures...BEFORE you hand over the keys. Read and understand the management contract, and understand how maintenance and tenant management operates. And READ and understand the monthly financial reports.