How to vet a property manager

Question

Hey guys newbie here trying to gather as much info as possible for future investing. So my question is how do you vet out a property manager for a rental property? How do you decipher if they’re a good property manager and how do you know if they’ll scam you. My uncle has some rental property in Orlando, Florida and he was telling me so real horror stories. From the pool running low on water for over a week, to them renting his property and keeping the money for themselves and about everything in between. Also not an isolated incident, he was telling me that he went through 7 different companies before deciding to just manage it himself from a distance and just visiting Florida(from New York) here and there to check in.

Oren Pfeffermann · Answer

Hey Steve,

It might help you to think about what you want in a property manager.  For me, I really need someone who will keep me in the loop at all times, given that I live in a different state.  I also need someone who would be willing to help me once I find a deal. A good PM can tell you what you might get for rent, and whether the neighborhood is "rentable".

I have found the best way to find a PM is through people that I know.  Do you know folks in your area that you trust?  Even if they don't own property, they might know someone in the biz.  Another thing to do is get yourself a list of questions you might ask several PMs once you get suggestions.   A good place to start is right here at Bigger Pockets.  Here is a linkhttps://www.biggerpockets.com/blog/20-questions-to-ask-a-prospective-property-manager

There are plenty of other links out there as well.  Remember, it takes time to find a good PM, and it's good to stay in touch with other PMs that you interviewed.  You never know when you might need to reach out to them.  Hope this helps!

Oren Pfeffermann · Answer

@Steve Barounis

My current area for investment property is Oklahoma City.  I chose that area because of similar reasons, as I live in California.  One of my best friends lives out there, so he or his wife can check on my properties if there are questions.  I have a great PM, so I haven't had to ask them for too much help.

On another note, if you are interested, I am working on a potential deal out there with another investor.  It's 1.25M for an apartment building and 4 homes.  Potential rental income is about 13K.  It's a package deal in an area that is doing really well.  If it comes to fruition, I can give you more details as it unfolds if you are interested.  There is potential that the other investor will manage the property.  Could end up as a BRRR or buy and hold.

TIm Harstead · Answer

Being a member of NARPM means they are held to a higher standard, so that is a start (not a end all be all) after that I would agree look at other properties they manage, look at their reviews, and ask a ton of questions on how a certain scenarios are dealt with.

Alan Dunlap · Answer

@Steve Barounis

Check NARPM

Ask if PM also has investment properties. Ideally You want someone who can view properties like an investor and not someone who’s just doing their job.

Steve Barounis · Answer

@Peter T.

Yes that makes perfect sense

Steve Barounis · Answer

@Seth Ferguson

This is a great idea

Steve Barounis · Answer

@Oren Pfeffermann

Absolutely appreciate the potential offer, I think that would be tough for me considering the distance it is from me.

Peter Tverdov · Answer

Like any other service, I would ask for referrals. I often offer them to potential clients I am speaking to. Search their company on DuckDuckGo and see if you can find reviews. See if they're a member of NARPM. Read their website, read their FAQ.

Seth Ferguson · Answer

I would also suggest driving by other assets managed by the company. I'm assuming you're talking about single family homes? Does the property look like someone's on the ball, or is it falling into a state of disrepair?

Jessica Brunner · Answer

@Steve Barounis hello! I always recommend asking as many questions that you can, even if it sounds redundant or silly. Also ask questions about things other than property management. You want a company with a lot of knowledge about the industry and not just about renting a property. Finding someone who has really great communication skills is also important. You want someone who will inform you of things. And who will be available to you even after hours at times! OKC has a great investment market!Jessica

How to vet a property manager

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