Maintain and Manage you own Properties vs Management Company

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Maintain and Manage you own Properties vs Management Company

Joseph Tramonte
Investor · Saint Paul, MN · Member since 2014 · 30 posts · 6 votes

I don't see management companies able or willing to do the small things that lead to bigger problems. ( Its been windy lately here in Minneapolis- here is a perfect example, The rental next to mine has a broken storm door and its just blowing open and then slamming shut for weeks now and no one cares. This is managed by a professional management company).

I see so many properties that are professionally managed (quote unquote) with deferred maintenance. The owners  are not driving by or live out state so they don't  have a clue about what is going on. This is just one of many examples I have seen throughout my tenure as a landlord Investor.

These issues turn into bigger issues, because tenants never notice these things and management companies don't drive by or walk the property. I'm in the camp, that if possible self managed is better.

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Kim Meredith HamptonBusiness Member
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
9y

@Joseph Tramonte Not ALL Property Management companies operate the same way. Speaking for ourselves, we actually have our homes professionally inspected before, during and after occupancy. This keep everything transparent, as well as letting the owner know what needs to be addressed/repaired. SOME owners choose to not repair, replace or even look at what needs to be done. I personally felt it was important (on my own ticket/expense) to get this done. Good to look at things with both hats (owner and manager), not all owners are as engaged or caring, or even have the funds to what is necessary to take care of their investment. If I have an owner that wont or cant repair or replace an item, I have them sign something that states that they know and are aware that this was their decision and they have been told.

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  • Christine Kankowski
    Real Estate Broker · Temecula, CA · Member since 2014 · 992 posts · 782 votes
    9y

    I am an investor but also own a property management company, so I see this from both sides.

    (Of course, all mgmt companies are different but here is what we do)

    We make repairs when tenants let us know about them.  In between tenants, and at our annual inspection, we review the property and let the owner know about preventative maintenance and any other items that could increase the value for hte owner.  

    For example, the fence on House A, is starting to lean,   the eaves on House B should get Paint,  the windows on house C are deteriorating, maybe all should be replaced, etc. 

    Some owners are great and want to maintain their property, others will delay, delay, until something actually is broken.  

    Prop Mgmt wants happy tenants, so a well maintained property is better for us. 

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Joseph Tramonte Not ALL Property Management companies operate the same way. Speaking for ourselves, we actually have our homes professionally inspected before, during and after occupancy. This keep everything transparent, as well as letting the owner know what needs to be addressed/repaired. SOME owners choose to not repair, replace or even look at what needs to be done. I personally felt it was important (on my own ticket/expense) to get this done. Good to look at things with both hats (owner and manager), not all owners are as engaged or caring, or even have the funds to what is necessary to take care of their investment. If I have an owner that wont or cant repair or replace an item, I have them sign something that states that they know and are aware that this was their decision and they have been told.

    [email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
    Compass | St. Pete514 Reviews
    WebsiteView Page
    1Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    Owners self managing are not often the best either in maintaining the small things. Tenants rarely report issues if the problem is not a inconvieance to them.

    Many times landlords will post on herh over issues of security deposits due to the fact that in self managing they never bother to visit let alone do regular inspections of their properties. The most content owner/self managing landlords are the ones that never get a call and never are aware of maintenance issues..........till the day their tenant moves out.

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Christine Kankowski and @Kim Meredith Hampton,

    Curious ...

    Were periodic drive-bys and other ad-hoc inspections of the properties under your management figured into your business/expense model?

    If not, why not?

    Would you have to wait for a tenant to report the "storm door flapping in the wind" issues? ... or would you detect it yourself and handle it without being prompted?

    I realize you only speak for your own businesses.

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @David Dachtera For our company, our Property Coordinators perform the drive bys and any other misc inspections (tenant reports a roof leak, mold, etc...) This is part of our compensation package to our employees. We do not have independent contractors on staff. Although, we do utilize some third parties for other items in our day to day management, I am big on consistency, transparency, efficiencies and especially professionalism.

    We cant catch everything, nor could anyone else unless you went to the property every day. We do the best we can, which is a lot more than most!

    [email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
    Compass | St. Pete514 Reviews
    WebsiteView Page
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  • Christine Kankowski
    Real Estate Broker · Temecula, CA · Member since 2014 · 992 posts · 782 votes
    9y

    Yes, we do regular driveways. and once a year interior safety checks, checking smoke detectors, co detectors, checks for small leaks under sinks, air filters changed, etc.  So a flapping storm door may or may not have been noticed based on the weather that day.  @Joseph Tramonte

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  • Joseph Tramonte
    OP
    Investor · Saint Paul, MN · Member since 2014 · 30 posts · 6 votes
    9y

    I drive by weekly and if I see something, I do a walk around and then address the issue that I saw on my walk around. Boots on the ground. A management Company will not do that.

    When I get called with an issue to repair, I also look around and many times I find something else that needs attention. Faucets dripping is a frequent call on my properties. Screws on door handles, loosening up, or Refrigerators handles screws coming loose. Tenants don't notice these things or maybe don't care, its not there property! These items can turn into bigger problems left undetected.

     I find Delta or Moen faucets last five years max on my rentals. At my house they last 10 to 15 years.

    Why? I'm not sure on that one!

    0Reply
  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y
    Joseph Tramonte From the perspective of an owner who uses a property manager some of what you're talking about is good for up-front discussion. To use a tiny example, I've told her upfront that if a garbage disposal looks like it's broken, replace it. Don't call me, don't ask me if I want it repaired, don't just take it out all together, just replace the darn thing and send me the receipt with my monthly statement. I know from our discussions that she has other owners that just want the garbage disposal gone. My point isn't about "what to do with a garbage disposal" but how I want the properties managed. If you have a detailed discussion with your PM about how to address XYZ and they *still* miss things, that's a different story. Maybe other (actual) PMs can jump in and say what goes into that upfront conversations with their owners. Or how they document (drive by with a photo of the front?) to document the state of the property.
    0Reply
  • Itiel Latova
    Hillside, NJ · Member since 2017 · 12 posts · 3 votes
    9y
    Hi all, this is a tad off topic... but I was wondering how much ( ballpark range) do management companies charge ( is it per property/per unit) and what services are typically included in that price or is it different and unique for each company?
    0Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    9y

    @Itiel Latova,

    It's normally 10-15% of rent, and they typically advertise and place tenants, collect rent and manage the property thereafter. 

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  • Itiel Latova
    Hillside, NJ · Member since 2017 · 12 posts · 3 votes
    9y

    @Linda S. thank you for that clarification! as far as repairs go.. does the PM take care of that as well and then just bill the landlord for the parts/labor? 

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  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    9y

    @Itiel Latova,

    We self manage, and take care of all the repairs ourselves, but if you have a PM.. they normally take care of it and send you the bill, but you can pre-authorize things if you want to be hands off. 

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