How to find a property manager when beginning

Question

Looking to start out of state rental property investment. After reading and podcasting getting a property manager seems to be one of our first steps we need. How do we go about finding one. Looking in the Kansas area.

Joe Norman · Answer

Here are a couple of things to look for/ask:

1) Are your property managers licensed (not all states require a Real Estate License to manage property, however even in the ones that do not the PM may go the extra mile to acquire one).

2) Are your property managers members of NARMP or another professional organization?

3) What is your manager:property ratio?

4) How do you prefer to communicate with clients, and how often do you do so?

Good luck!

Katie McKay · Answer

Thank you, I will need to put down things i can bring to them being we are in the very beginning stages we do not have a contractor or anything like that just our integrity and were honest up front people.

Patrick Drury · Answer

@Katie McKayAsk your agent in that market for some property management referrals/ recommendations.

Katie McKay · Answer

Not having a property yet, would you recommend getting an attorney before hand while find a PM?

Katie McKay · Answer

Thank you very much. a lot of good information that we wouldn't want to learn the hard way. Going into out of state real estate having a property manager that we wouldn't be dealing with in person is very nerve racking as i am personally that like to deal with people face to face.

Angelo Argentieri · Answer

Wishing you the best of luck!

Katie McKay · Answer

Thank you! I will write these downs!

Chris Seveney · Answer

Finding a PM is not difficult, finding a good one and one who does not have a one-sided contract is another. Make sure to have an attorney check indemnification language. For example, out of the last 5 agreements I read, 4 of them had it listed that I would indemnify and defend the property manager even if they did not follow abide by the laws of the land....

Drew Sygit · Answer

@Katie McKay

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

How to find a property manager when beginning

Most Popular Reply