Property Managers claiming vacant units

3 Replies

Hi,

I recently explained what I wanted to do with a family member about how being a multi-family property landlord would be like and how property management works in the scenario. They brought up the question and basically asked me, "What do you do in the situation where the property manager is claiming some units as vacant, but have secretly rented them out and just pocketing the income from that?".

So what is the most effective way to make sure your out of state property management company is doing things the right way / above board? Not trying to sound paranoid, but I've been reading horror stories and Id like to be able to assure future investors that everything is running smoothly when taking on a project like that.

@Andrew Lawrence - for clarification, what exactly are YOU trying to do? Your post doesn't make it clear. Are you looking to invest out of state? Or are you going to be the property manager?

@Andrew Lawrence   My owners sign the leases, and if we had more than a month of vacancy, that would be pretty unusual.  Are you thinking you want a whole apartment complex or just some small residential multi-family?  You should be interviewing different companies and checking reviews online to see if other owners have complaints.  Also, I would plan to visit the property in person on occasion.

What if I’m driving and another driver runs a stop
Sign and hits me? This could happen but will it keep me from driving. No. I look around, I’m aware and I fasten my safety belt. The same thing with a PM. You do your due diligence, check references and watch your statements. Beyond hat you can continue to run through worst case scenarios that will probably never happen or you can get going and buy something

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