Investor · Madison, WI · Member since 2016 · 19 posts · 4 votes
Hi all,
Does anyone have recommended Property Management company? I recently purchased a duplex that is currently managed by a large Madison property management company, and just from looking at the condition of the property and also reviews online, they are not doing a good job managing properties. They also seem to have bad reputation among tenants.
It also seems like the larger the property management company the less they focus on the needs of the owners and tenants.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers
1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?
This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!
Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 431 votes
10y
Hi Tim,
You are correct in thinking that with most property managers the larger they get the less about the owners it becomes. Also I have seen that the company may be large in clientele but small in staff, which can create the a problem with handling things efficiently.
Colonial Management and Forward Management are two places to consider. I have recommendations of where not to go but I don't want to post them on the thread out of professionalism.
Investor · Madison, WI · Member since 2016 · 19 posts · 4 votes
10y
Thanks for the response Corina! I felt kind of left out for a couple of days without seeing a response :)
I have recently joined the Madison REIA and got a couple of contacts as well, but not the ones you mentioned. I tried calling one of the contacts and left a voicemail, but apparently she's very busy today, hopefully that is not a sign.
I was just curious if either of you got any more info or recommendations on property managers. I'm currently in the same boat, looking for a quality manager who will handle 1-4 unit properties.
Attorney and Real Estate Broker · Madison, WI · Member since 2016 · 265 posts · 100 votes
6y
There is a property manager with an office in the Madison REIA office. You could probably call Shlomo or Chris Hake and ask for him. I know he does a lot of this sort of thing. Also Justin Dobson handles a lot of 4units: dobsonpropertymanagement at gmail.com
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers
1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?
This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!
