Property Management for Large Portfolio

5 Replies

We have a large portfolio of 350 total units in Florida, in the Fort Myers and Cape Coral area. How would you best situate the property management for this? Would you use one bigger company, a couple bigger companies, start with a 10+ companies and weed out?

Thanks for the input.

Note for Fort/Cape PMs: We actually own a PM company. I don't think it runs too financially beneficial, but I don't think the managers would get rid of it. Just more of a theoretical question as I don't see the current setup as the best setup.

I would look up NARPM for PM's in your area... I would interview and check references on anyone you think of using and most certainly take your time and think through your possible scenarios.

Here are some good questions I tell people to ask to see if the PM they are talking to are professionals or people that do it out of something to offset their other business or job..

Questions to Ask prospective management companies

  • What are your average days on market for vacant homes?
  • What is your average rent amount for all properties managed?
  • What is your average work order cost for the owner?
  • What is your average make ready cost for the owner?
  • Are all my invoices uploaded to my owner portal?
  • How do you advertise your vacant units?
  • Do I receive video of my pre and post make ready?
  • Do you have a setup fee?
  • Do you upcharge on maintenance?
  • When do you make owner payments? How often?
  • Are you a Certified Property Manager?
  • Are you a member of NARPM?
  • What is your Guarantee?
Originally posted by @Steven Segal :

Note for Fort/Cape PMs: We actually own a PM company. I don't think it runs too financially beneficial, but I don't think the managers would get rid of it. Just more of a theoretical question as I don't see the current setup as the best setup.

Side note--but you my friend, have one heck of a great name.

Originally posted by @Steven Segal :

Note for Fort/Cape PMs: We actually own a PM company. I don't think it runs too financially beneficial, but I don't think the managers would get rid of it. Just more of a theoretical question as I don't see the current setup as the best setup.

 I'm curious about your logic.  Why do you think this?  We don't have nearly that many units (we're hoping to have near that many someday, but not for some years).  It would seem to me that having an in-house PM would cost-effective at that point.  

 @Stephen Chittenden :

My opinion on this isn't based on logic in this case. I believe that is would be cost-effective if ran correctly - very cost-effective at 300 units. The correct running of the PM is more of the issue in this case. It is a very operational business, and we are not setup to run that efficiently man-power-wise. 

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