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”:
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😊
Thanks @Marcus Auerbach! @Orlando Spencer Let me know if you'd like to set up a time to chat. We try to make things as easy and transparent as possible. You can see all of our pricing and a map of our current properties under management on our website.
It sometimes depends on where your property is located but I use Alex Kaster from City Wide Rentals and I can't say enough good things about them. My only regret is not moving my properties to them sooner. If I didn't use Alex, I'd use Ed Riggenbach from Welcome Home Milwaukee or Mike Baron from PMI of Greater Milwaukee. All are not only property managers but experienced buy & hold and flippers themselves. Mike Baron was actually one of my real estate investment coaches when I started 9 years ago.
Great Info. I also have a Duplex in Tosa. I am looking to off load the property management. I am an agent and investor in Denver. Here there is a pretty strong demand for renting by the room which can be more profitable than a traditional lease however more work as well. We have one great PM that specializes in rent by room property management.
@Rebecca Knox I will reach out to Alex Kaster as well. Thanks for the info.
For some context I have a duplex on 61st and north, both units are 2 bed 1 bath. I am self managing now and have been from out of state since 2016. I recently switched to rent by room on the downstairs unit. I am getting 675 and 625 with all utilities included. Upstairs is a friend of a friend of a friend that has just continued and I need to up the rent. I am getting 725 no utilities included.
In Denver we can get bare minimum 750-800 per room. I work with house hackers that will buy a 6 bed house and rent each room for 800 and do pretty well.
One other question for the group here - has anyone had experience with Airbnb Arbitrage? For example renting half the duplex to a long term tenant and letting them airbnb the other unit? Could be a win win for owner and long term tenant. Another idea that can do well in Denver but im not sure the demand for Tosa.
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