I'm looking to purchase some multi family rental properties out of state in the mid-west(arkansa or ohio) and I'm not sure the best PROCESS I should follow in choosing a management company.
I've only used a management company once so I'm not that experiences in choosing one or questions I should ask. Is there any tips or gotcha's I should watchout for?
Google reviews and yelp would probably be a good place to start. any other thoughts. Thanks.
Check out IREM.org, you can search by specific areas. Organizations certified by IREM tend to be better. Be careful with any of them though, ALWAYS ask for references. I would also talk to tenants in units that they manage.
I've found that online reviews are almost always going to be skewed very negatively. It's like how nobody writes reviews about how great the power company is until they don't have power for five minutes. Then they jump on Yelp and start ranting away. Same goes for property management companies a lot of the time.
In the past I've called a few places and asked how they can help me find a place to live as a tenant. It was a good indicator of how they treat people and provide service. If they can't give good service to a new tenant, it's time to keep looking.
I found this awhile ago and think it has a lot of great questions you can ask all property management companies. Also ask them about all their fees. A lot of companies charge for this that and the other. Also make sure you ask them these questions they are more tenant specific https://www.managemyproperty.com/articles/tenant-screening-21
From being on the other side....owner and broker endorsements go a long ways. Time in business is also very important. If you ask around you will get good referrals vs searching on your own.
Ask for this along with typical NOI and expense ratios questions. They should be able to answer these questions quickly.
I do think reviews are important. I personally was targeted by a tenant group that spammed my google reviews trying to avoid a small rent increase....those reviews are not as telling, but management never returns calls, property owners complaining of similar things are very telling.
Feel free to reach out if you want a bunch of other “tells” or questions to ask.
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