Property Management Recommendation Lehigh Valley and Philadelphia
Rental Property Investor · Queen, NYC · Member since 2018 · 63 posts · 22 votes
Looking for an alternative to my current Property Management company in Bethlehem PA.
Looking for either a good local Lehigh Valley (Allentown/Bethlehem/Easton) company or larger company who Ideally operate in Philly as well since I plan to explore that market as well soon.
Any help appreciated.
I recommend not grilling property management companies...The top Philadelphia property management companies tend to filter out bad, predatory rental owners. My own company turns down 83% of those owners that request service. We cap ourselves to only manage a certain number of properties; so that we do not over-grow our ability to give the optimal quality service.
So we only manage properties that we see as being profitable for the owners, and it's typically the owner that is the deciding factor. We are not slumlords, and representing bad owners would make us that. You are deciding on our service; but we are also deciding on you.
I think the latest books on real estate investing, like the BRRR Book that just came out through BP seem to be getting this better than the predecessors - a good contractor or a good property management company picks and chooses the best clients, and turns down the rest.
All that said, you must ask the important questions. Just do it in a relaxed, comfortable conversation. And this goes triple with finding contractors. I always cringe when I read articles that recommend corning contractors with hard interviews. This is the wrong market for that! Now that the recession is about here, you will be able to pick and choose your vendors better in just a few years. For now, just keep it friendly.
Discussing fees isn't allowed; but nationally expect to pay between 8-13%, with 10% being the most common. In Philadelphia, I think you will find the better companies come in around 8%. Hidden fees are Huge in the property management business, so those are also important to get to the bottom of before you sign on a company. A mark up fee on any work done on the property does seem commonplace; but it MUST BE DISCLOSED! Check your property management agreement. If its not there, then they should not have charged it.
@David London
It is very important that you make sure you take the time to interview and have candid conversations with a PM company. Let them know your strategy, your goals and what your business plan is to ensure that your business plan aligns with theirs and you can both work towards the same goal. If they are not aligned then simply keep looking till you find one that is.I would look up NARPM and start with them..Below are some questions I would think would be a good starting point for you to see who really treats their company like a business or a hobby.
My business partner is a regional VP for NARPM and I am happy to help if you need anything please reach out
Questions to Ask prospective management companies
* What are your average days on market for vacant homes?
* What is your average rent amount for all properties managed?
* What is your average work order cost for the owner?
* What is your average make ready cost for the owner?
* Are all my invoices uploaded to my owner portal?
* How do you advertise your vacant units?
* Do I receive video of my pre and post make ready?
* Do you have a setup fee?
* Do you upcharge on maintenance?
* When do you make owner payments? How often?
* Are you a Certified Property Manager?
* Are you a member of NARPM?
* What is your Guarantee?
* Do you provide move in and move out reports
* How many pictures do you take of the property prior to tenant moves in and after the tenant moves out
* Do you get weekly reports when the property is vacant what prospective tenants are saying about your home
* Do you provide monthly newsletters to your tenants
* Do you hold investor education classes to help me become a better investor
* Do you have single point portfolio based management services?
* How many properties do the owners actually own themselves?
* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits
* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?
Hey @David London! TCS and REMA are two solid and major players in Property Management in Philly. Many of my rental investors use either of those two services
@Steve Rozenberg Thanks for the exhaustive question list! I am actually pretty sure I looked at NARPM after I listened to your BP podcast...unfortunately it doesn't seem to be too popular in PA and only one name came up within 20 mile radius and just few more within 50...will check them for sure. BTW loved your podcast episode...I think I already listened to it about 4 times on all my latest trip to my property and then again today...Full of great advises to digest slowly and repeatedly!
Quick question. Is it common for PM company to charge the contractor they recommend referral fee (10%) without disclosing it to the owner?
Thank you I appreciate you listening and enjoying the content of myself as far as the 10% I’m not sure about your state but normally the company has to disclose their getting any money back from a referral in the contract that you sign.
Thank you I appreciate you listening and enjoying the content of myself as far as the 10% I’m not sure about your state but normally a company has to disclose the fear of getting any money back from a referral in the contract it inside.
No it’s not normal it could just be a business practice of that company. I do understand why companies do that and as long as it’s not passed on to the client And the maintenance company takes it out of their side as a marketing plan acquisition cost then it seems fair but I never think that should be tacked on top and the client have to pay for that
Was definitely not disclosed and I came to know about it because their billing made a mistake (my guess) and broke it down into 2 charges...took them about 10 days to clarify...when I'm done sorting my issues with them I'll try to post a more detailed account...yet another learning experience.
I recommend not grilling property management companies...The top Philadelphia property management companies tend to filter out bad, predatory rental owners. My own company turns down 83% of those owners that request service. We cap ourselves to only manage a certain number of properties; so that we do not over-grow our ability to give the optimal quality service.
So we only manage properties that we see as being profitable for the owners, and it's typically the owner that is the deciding factor. We are not slumlords, and representing bad owners would make us that. You are deciding on our service; but we are also deciding on you.
I think the latest books on real estate investing, like the BRRR Book that just came out through BP seem to be getting this better than the predecessors - a good contractor or a good property management company picks and chooses the best clients, and turns down the rest.
All that said, you must ask the important questions. Just do it in a relaxed, comfortable conversation. And this goes triple with finding contractors. I always cringe when I read articles that recommend corning contractors with hard interviews. This is the wrong market for that! Now that the recession is about here, you will be able to pick and choose your vendors better in just a few years. For now, just keep it friendly.
Discussing fees isn't allowed; but nationally expect to pay between 8-13%, with 10% being the most common. In Philadelphia, I think you will find the better companies come in around 8%. Hidden fees are Huge in the property management business, so those are also important to get to the bottom of before you sign on a company. A mark up fee on any work done on the property does seem commonplace; but it MUST BE DISCLOSED! Check your property management agreement. If its not there, then they should not have charged it.