Property Management, any Suggestions?

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Tracy Streich · Answer

I would agree with @Filipe Pereira take the time to interview and find a PM you can trust. Having a PM is more than just having someone collecting rent. They are making decisions for you when it comes to your property. They are also there to protect you. To make sure the local and federal laws are being followed. The question is do you want to be a landlord and spend your time on tenant issues or spend your time finding deals and builiding your portfolio. I have a PM company in Oklahoma. We mange over 500 homes. 75% of our owners have 1-3 homes. I think there is a myth that you have to have a high number of homes in order to have a PM. A good property manager is not going to give a big discount for multiple homes unless you have a a lot, maybe 50 or so.

Make sure they are licensed, insured and educated to be a PM. A great place to start is the National Association of Property Managers (NARPM). They have search function on their website to find PMs in your area. Good luck

Make sure they are licensed, insured and educated to be a PM.   A great place to start is the National Association of Property Managers (NARPM). They have search function on their website to find PMs in your area.   Good luck

David Faulkner · Answer

Right on ... PM is a thankless job, and I think key if you go into it is don't take on anyone and everyone who will have you as a client. This is true of many commission based service professions. The best PM I ever had did it that way, managing his own and then selectively took on others as a bolt on side gig ... unfortunately, that guy sold his PM business to a national chain and they SUCKED BIG TIME ... good for him, but not so great for me :)

David Faulkner · Answer

I would buy quality assets in quality neighborhoods that attract quality tenants that are easy to manage in your local market, and then I would self manage. If you buy these type of properties, then you don't really need a PM ... if you buy the other extreme, then my experience is that a PM won't really be able to help you there either because they can't "work magic" on a fundamentally poor tenant base.

I went through 7 bad PMs in 5 years in Phoenix, so I have no good ones to refer you but plenty of bad ones ... I can tell you, though, that managing a bad PM is far more work than self managing a good tenant, and my experience has been that most PMs are bad no matter how hard you screen and if you buy in the right neighborhood then most tenants are good, though you still need to screen.

Filipe Pereira · Answer

@Bryan Templin I understand. I just joined forces with a broker here in Connecticut. I will be taking over his property management and will be building it up. I'm a guy that LOVES systems and am also a landlord myself, so I feel I am pretty well cut out for the job. Go beyond feeling comfortable with whoever you hire - ask them how they vet tenants - how many they've had to evict (not including inherited tenants) and if you will get financial reports. Each of these things are items that we pride ourselves on here at Santa Realty. We understand owners/investors want to be exactly that, so we strive to make things as easy as can be for them. I hope you find someone who can help you out west! Let me know if you ever buy something in Hartford county or Massachusetts, LOL :)

Filipe Pereira · Answer

Hi @Bryan Templin, as a property manager myself here in Connecticut, let me try to provide some insight - I think for those who are contemplating handing off their properties to a manager it is because they are usually A) moving or B) want to be hands off. If you don't mind being a bit more active, I don't recommend taking on a property manager. However, if you do want to be more hands off, find a manager that will treat you right. I make it a point to reach out to the owners of the properties I manage at least a few times a month. Scale isn't a huge concern - just like there are owners with one or two properties, there are also PMs with only a few doors.

Happy Investing!

David Faulkner · Answer

Yes sir! Sold all my Phoenix stuff, though ... I really like the Phoenix market, but all of the remote PM "fun" described was more hassle and stress than I wanted to deal with long term. Bought those in 2009-2010 and still ended up doing very well, so don't shed a tear for me :)

Filipe Pereira · Answer

Depends on who you ask! Some say miserable, some say just dandy. I'm on the side of just dandy. Taxes suck, but it's a lot more landlord friendly than our neighbor up north (Massachusetts).

Property Management, any Suggestions?

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