How do you manage your property manager?

Question

Hello BP Team,

For those of you who outsource your property management, can you share how you manage your property manager? Do you have regularly scheduled meetings (Yearly/Quarterly/Monthly)? Are there certain metrics/performance you hold them accountable for (vacancy/turnover)? Do you review processes?

Would love to hear your thoughts!

Charles Carillo · Answer

@Alan McClain

On our larger properties we will speak with the management company weekly, on smaller properties I will keep in contact with the manager's office via email and get on a call if there is a major issue (1-3 times per year). We will get monthly reports for all properties and we will walk the larger properties at least once monthly and then smaller properties 1-2 times per year. We have VAs that will actually will advertise the properties in addition to the PM to keep the turnover at a minimum.

Daniel Ditto · Answer

This is going to depend on how many units you have rented with each manager. When I started with my manager, he and I spoke every month and sometimes less frequently unless something was off or something big happened. Now with many more properties I make sure to set time aside to contact him for about 20-40 min every two weeks. We have become good friends and he likes to talk so part of my follow up is just to keep the relationship fresh and make sure he knows I appreciate all he does.

I imagine this will also depend on the type of properties you own. I own only C and D quality rentals so I guess I have less worry about minor damages and they are expected with the demographic that rents them. I live out of state and only go in person every year or so, again, mostly to maintain the relationship but also just because it seems the wise thing to do. So much of the management of your manager will depend on the level of trust and the history of execution that has occurred.

Joseph Firmin · Answer

Hi @Alan McClain, It really depends on your property size, business plan, etc. If you have a multifamily property that you are trying to execute a business plan against and have a timeline that you are operating with, you'll want to set expectations up front to hold the PM accountable. If they are just managing 1 SFH, then you may not need to check in as often, moreso on an as-needed basis or if you see something abnormal in your monthly statement. As often or as infrequent as necessary.

How do you manage your property manager?

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