Berkshire Hathaway Property Management?

Question

I’m looking for a qualified property manager in the Pittsburgh, PA area for my first rental property (4plex).  Has anyone worked with Berkshire Hathaway as their property manager? If so, would you recommend them?

Tim S. · Answer

If you are a small investor you should use a small PM firm, a big company will not give a small customer a high level of service, they will put their efforts into their big customers. They will tell you that they treat all customers the same, but they don't. Money talks and gets attention, small money = small attention.

You still need to vet them no matter what size, will they provide the services you need at a fair price, are they responsive to you and the renters?

Shawn Johnson · Answer

@Gregory Hiban That's nice of you to do handyman stuff but it's not legal in some states. Plus there is an added liability for you in doing so.Curious, are you doing PM on the side to your sales business or are you doing sales on the side of your PM business?

Gregory H. · Answer

@Shawn Johnson No worries, that is what seven figures of liability insurance is for. I also keep it pretty basic, and don't touch plumbing or electrical. They're both pretty discrete businesses for me and wind up generating even amounts of income, PM is the reliable income, sales comes in spurts here & there. All sales income goes right into investments, don't rely on it to live.

Brad Larsen · Answer

@Cameron Riley  2nd vote for wanting to hear more about the unfair property management fees you mention.  Just trying to learn as I really want to find out more.  Are these fees being charged to the owner?  To the tenant?  Do they serve a distinct purpose and pay for the service that investors demand?  Please elaborate.  Thanks in advance.

Gregory H. · Answer

@Cameron Riley Could you elaborate on the unfair fees you've seen out there, I'm curious what PMs try to charge for.

Joe A. · Answer

I used them in Texas once and they were awful.

Allyssa McCleery · Answer

One fee I have come into contact with is a notice posting fee (such as a three day notice). It seems like @Craig Bellot got the bulk of the others.

Craig Bellot · Answer

@Gregory Hiban here are some examples of exorbitant fees which some property management companies charge:

Repair markup fees,

property visit fees,

tenant turnover fees,

lease renewal fees,

contract start fees,

contract end fees,

existing tenant takeover fees,

Property marketing fees,

Fee to use owner vendor instead of their own.

In Bridgeport Connecticut I’ve even seen a vacant apartment maintenance fee.

The PM starts becoming incentivized to over repair and turn units since more fee income is made this way.

This is not aligned with the owners interests and frustration is bound to ensue on the owner.

There is a big opportunity for aligning owner and PM interests in this business and can make for a great partnership but a transformation needs to happen first.

Joe A. · Answer

So true!

Gregory H. · Answer

@Craig Bellot Lol, wow, I guess I'm doing it wrong, I charge 10% of rents, full stop, that's it. I also do small handyman stuff myself when I can since its more convenient than having to schedule a contractor & meet them there.

Berkshire Hathaway Property Management?

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