Selecting a PM-What to ask?

Question

Hello BP,

Due to my local market of South Florida being way to expensive, I am looking into a new area where I currently own land(up north). Considering this is my first time using a property manager for an investment out of my area(3 hours), what are some key questions/items I should ask when vetting the right one? What are your experience in using a PM? Should I even use a PM if my investments are 3 hours away? Stuck on the fence here :/

-Austin

Raul R. · Answer

Distance is not the issue, I know investors that are able to self manage their properties hundreds of miles away. Time is whats valuable, do you have the time and experience to manage your own properties? Leveraging their resources ,years of experience of a good PM are worth the fee, I emphasize on good..

Important questions to ask is knowing all the fees (remember it can be negotiable especially if you have multiple properties for them to manage, if you dont I wouldn't bother asking for lower prices), your payment methods, their eviction Process, ask for referrals, how many Properties do they manage , what areas? That can get you started

Hope that helps....

Jeremy Taggart · Answer

@Austin Fox Ask what their screening process is, how many employees they have to be able to show your units/communicate with tenants ( want to make sure they are staffed properly and can dedicate the time that's need to properly manage your units), what their process is for handling repairs, what their vacancy rate is, what all is included in the monthly management fee or if there are any surcharges for inspections, meeting utility companies/vendors, etc. 3 hours away I would probably hire out management. I wouldn't want to manage that far away you don't have contacts there and you'll be spending more than necessary in gas/won't be able to dedicate the time to it needed to successfully self manage.

Austin Fox · Answer

@Jeremy Taggart thanks for the response and you're spot on how I feel. Like I COULD self manage but it most likely would cause a ton of headaches being so far. The PM would give me peace of mind allowing me to focus on other important tasks. Ill definetly be asking those questions as I continue vetting the proper pm