Ive made a few flips and currently have 2 properties that I fixed up and am renting out. I manage each myself and things are going really well.
But here in Illinois where the properties are located, the taxes are pretty crazy high. I was playing with the numbers, and it would be cheaper to hire a property manager in another state than it would be to keep paying Illinois taxes. I did a lot more work that that, but basically I am trying to find a nice growing cheaper city to build a portfolio in.
Ive kind of narrowed it down to the Chattanooga TN area. Now my problem is I have no experience with property management. What is the best way to BEGIN my search? Should I contact a PM first? Should I only get in contact after I find a property? Would a PM be a resource for finding a decent property?
Sorry if this is a common question, I am new here and tried to find the question first. Have a wonderful day yall.
A PM is an important team member, but so is an investor friendly agent. I don't have any contacts in Chattanooga I could share unfortunately but if you have keyword alerts setup, you'll be notified of posts that are frequented by investors in your target market and reaching out to them is a great first step.
A PM is an important team member, but so is an investor friendly agent. I don't have any contacts in Chattanooga I could share unfortunately but if you have keyword alerts setup, you'll be notified of posts that are frequented by investors in your target market and reaching out to them is a great first step.
@Christopher Earling There area great resources here in town. If you are interested in getting in touch and connected with certain people here in town feel free to shoot me a pm. Check out my website I think I may be able to help. www.tennesseevalleyhomedeals.c...
Below is a my list to get started. Finding a good property manager is like finding a good tenant; it takes education and effort. Find out what a good property manager looks like. Screen at least 2-3 different ones. Compare their fees to the fees of others in the area to find out what is acceptable.
Remember: cheaper doesn't mean you'll make more money.
You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers
1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?
This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!
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