How Can I Motivate my PM?

Question

Hi dear friends!

I am an out of USA investor. I've recently bought my first SFH. It is currently managed by PM. Generally, I want to increase my portfolio, but that will probably will take some time ( I guess it will take a 6-8 months) until my next property, as RE is not my primary occupation)

I pondered upon a question:

How can I give extra motivation for the PM to really care about my property?  The first answer that jumps to my mind is: "You are too small for that". But is it? Isn't there something I can do?

I am very curious to see your thoughts/suggestions/perspective/tips.

Thank you very very much!

James Wise · Answer

Hire a large company with systems & place & you don't need to think about this kind of stuff. They have proven processes to handle the management of rental properties. If you've got a Property Manager who is small enough that you are able to motivate them you don't really have a Property Manager. You are the Property Manager and that person is your employee. How to properly motivate your employees is a whole different topic of discussion.

Michael Noto · Answer

People who are in the top tier of any profession are typically very self motivated and property management is no different. My investing business partner is a full time property manager and the last thing he needs is a pep talk from a client of his. He’s always completely plugged in doing everything he can for his clients.

James Wise · Answer

If the tenant is paying rent then creating an artificial turnover is usually not in your best interest. They need to be doing something that costs you money for it to be a good idea to remove them.

Stephen Glover · Answer

@Nathan G. Exactly.  I'll also note that "motivation" comes and goes.  If you need to motivate, you'll need to continuously motivate.  Find a good PM and don't haggle them on the cost of their services if they provide good value.  Ask other investors in the area what PM they use and the experiences they've had.

Nathan Gesner · Answer

If you hire a good PM, they will do a good job and won't require "extra" motivation.

Caleb Heimsoth · Answer

@Idan Narotzki. What about these tenants make them hard to manage? If they pay rent, let them keep paying rent

Idan Narotzki · Answer

As a beginner, I am not sure: Things moves very very slowly. I closed a deal on 31 May - SFH with tenants. It seems that the tenants are hard to manage. Their lease is ending soon, at 7.31.19; The tenants want to continue but the PM suggest me to move them out.

I am trying to understand if that suggestion come from the reason the tenants hard, or because it is better for the PM - charging a fee of 500$ for getting new tenants.

Jacob Sampson · Answer

I can assure you they are motivated.  Unfortunately PMs best interests are in direct conflict with your best interests.  Especially if they own their own properties, also.

Taylor L. · Answer

To understand a bit better, have you had issues with their performance yet?

How Can I Motivate my PM?

Most Popular Reply