I am purchasing a property (4-plex) roughly ~1.5 hours away that I want to hire a PM for. I have interviewed a few, and have found my own realtor and a professional company as the most responsive and with the most astute answers.
Realtor: first property under management, discounted rate of 3%, lives very close to the property, likely will receive attention due to proximity to the property. No systems/processes yet, could groom (though I have little exp. my self)
Pro: 200 units, rates of 6-10%. Lives in the area as well. Likely will receive less attention, but managed by systems and processes set up by company. Will get access to Buildium portal, along with periodic inspections and a nifty maintenance tracker.
Thoughts, suggestions? Who would you go with?
As with any question ever answered with REI, "It depends..." :) The different items to consider when considering a Real Estate Agent vs a property management (PM) company is who is going to give you and your property the attention it deserves?
Based on several interviews from the PB Podcast a common theme is that a Realtor may not have the time to focus on your property compared to a company that makes PM its business. Of the real estate agents I know, they are super busy working the business that provides for themselves and their families. On the other side, not all PM companies are created equal regarding quality and attention to detail either. In addition, the specific PM company may not normally manage the type of property you are asking them to.
These are items to consider as you make your decision; go with who you feel will work better with your property and your business model.
Hope this helps!
If you have $100,000 to invest in the stock market are you going to choose the person with experience,systems and online access. Someone with a proven track record of investing, protecting and making money? Or, someone who says I think I can figure that out. Just trust me. The same thing goes with real estate. There are some brokers who specialize in listings and purchases transactions. Others specialize in property management. Why not go with the expert. There is a lot of lose and risk with the upside being to save 2-3% on a commission.
Unless the agent has their own personal property I wouldn't do it. One of the big benefits of a PM company is their vendor contact lists. These companies have vetted service companies that they use daily. Being able to have an AC company or plumbing company come out with little notice is worth the extra management fees. A single agent will not usually have those kind of connections.