Updated over 6 years ago on . Most recent reply
Taking property management in house
We have a few properties about 150 miles away, so we currently have a property management company that is managing the buildings for us. We recently switched over to Appfolio for our buildings we manage directly, and I was thinking of taking the property management in house with the other ones as well. They are technically already in the system as they submit payments directly to us, but we do not like the way the property management company is working; and this is our second one. They can open up a support ticket through the online ticketing system or call a toll free 1-800 number to page us and someone would reach out. We then call in a service technician and have them contact the tenant to setup a service call; which we pay for. We'd keep a realtor on to fill the vacancies, but we'd save 8% of the property management fee as well as any BS charges they they charge us. The biggest issue we have is they cannot produce original receipts, so we have no idea what is a real charge or an upcharge. They just claim they pay their contractors by the hour. It's just strange when we have charges for 100, 200, 650, etc, and they have no proof to back it up.
Does anyone else does this?
Most Popular Reply
Sending documentation on original receipts could be important to prevent liens.
I've self-managed a few rentals that are 2.5 hours, just over 170 miles, away for over 20 years. Some were in opposite directions meaning they were over 5 hours away from each other. You need a plumber and a HVAC person who is local, which I had. You'll need an electrician too if you have electrical issues which I did not have. Be sure to pay their bills on time. They'll learn who you are and they'll do your work promptly when you call.
On your commercial property, you might need a cleaning company, a roofing company, and a lawn service too, all of which you'd be managing.
I'm guessing the tenants are not Triple Net....
You might ask all those folks if they know anyone who is a PM. Of course that PM would hire that contractor but if the price is fair and they give the receipts etc., that you're looking for then it would likely be a win-win.
Some areas don't tax labor but I agree with you that the receipts lack backup and you should get it from the PM.