Which property management to use

Question

Account Closed · Answer

Sandeep, I am a PM and recently wrote a blog on how to find a property management company as an out of state investor. There are several factors to consider, and I would encourage you to take a quick read through of the things to be aware of and the right questions to ask! Here is the link: https://www.biggerpockets.com/blogs/10723/71963-finding-the-right-property-manager-as-an-out-of-state-investor

Sandeep G. · Answer

thanks Account Closed!

Michael Tempel · Answer

As a PM I am interested in getting feedback.  We mainly do large 25-200 unit contracts, but recently started a single family division.   My goal in the meeting large or small is the following:

• Pay for ourselves and make the owner money
• Owner has to invest as little time as possible, we can handle everything, but understand owners like to be involved
• Provide all reporting, banking, tax recording necessary timely.

Is that a good goal?  I am always shocked to see us lose to small outfits that have horrific reviews.

One item I missed is maintenance.   We have uniformed techs with vehicles showing company name for 25-35 and hour based on market plus materials.

Sandeep G. · Answer

@Andrew Kerr @Bryan O. Thank you. In speaking with the a few PMs..I felt the one already in place had the best knowledge. She was maintaining good logs and was able to tell me of any defaults. she is local to the area and knows the tenants.

Other PM's i interviewed also felt convincing but its hard to know exactly what each one can do for me just from one interview.

if i decide to go with one PM over the other, as a landlord what are some of the must have points in the owner-PM contract? any exit strategies that i need to be aware of ? etc

Sandeep G. · Answer

Thank you. In speaking with the a few PMs..I felt the one already in place had the best knowledge. She was maintaining good logs and was able to tell me of any defaults. she is local to the area and knows the tenants.

Other PM's i interviewed also felt convincing but its hard to know exactly what each one can do for me just from one interview.

if i decide to go with one PM over the other, as a landlord what are some of the must have points  in the owner-PM contract? any exit strategies that i need to be aware of ? etc

Bryan O. · Answer

@Sandeep Gangadhar typically, a buy/sell agent knows nothing about being a property manager. They might, but may not. That doesn't mean that the prior owner has a good management company either. Treat this as it is: a new buy that will need property management. Interview your agent to find their management skills, interview the existing, and interview others you would possibly hire. Start from 0 and vet your management. There are lots of posts with the types of questions you can ask to help determine the level of skill and ability for a PM/company.

Andrew Kerr · Answer

@Sandeep Gangadhar Does your agent who is helping you buy the home operating a PM company? If not, don't use them. Not all agents are good PM.

I would sit down with them and interview them. Its hard to make a decision purely on they were already in place, and he helped me buy the property. I would want to see their office, and if it is organized. I would want to know the fees they charge. Are they a one person shop, or do they have staff? I would want to know if they have a maintenance person on staff or if they contract out all the repair work. I would want to talk with other clients of theirs and get their feedback.