Hired a Property Manager

[David Moore]

Just wanted to post that I hired a property manager for my four plex.  I've been quite critical of Property Management companies, stating they are a waste of cash.  We had experienced high cost on turnovers in both PM companies we had.  But over time, I started to notice things about the PM companies that were ingenious.  First was the PM company I had in Albert Lea only switched out deadbolts on turnover.  Small matter, sure, but really smart.  Why put the turning knob through the added wear and tear?  I also missed our PM in the Twin Cities as my leases started to get dated, and I missed having the team readily available.  With a good PM with references, I have a property manager, a leasing company, an accountant, a maintenance manager, a lawyer, and the best thing is, they are a team and coordinate themselves.  

I'm enjoying life more, and budgeting for expenses from my PM.  Setting aside a larger monthly amount that may or may not be spent, but planning for it.  I think it is going to go better this time around.  And now I can finally add another four plex, Lord willing.

[Ashley Kehr]

Thanks for sharing David. I currently self-manage but in the future would like to have a property manager. When my kids get a little older I want to be more passive in my business. Good luck on finding your next fourplex!

[Justin Egge]

Thanks for sharing David. Your post sparked a question - is there a legal requirement to change out locks on turnover to protect the tenant, or is this simply a 'best practice'? Either way it's smart - just trying to educate more on liabilities where present. 

[Kenny Dahill]

@David Moore, good stuff!  There are definitely benefits to finding a great property manager.

@Justin Egge

@Justin Egge, I think it is mostly best practice so the former tenants can't come back.

[Amber Gonion]

@David Moore. I think PM is like anything else. Realtors, auto mechanics, retirement fund managers, lawyers, etc. if you have a bad one you think they are a waste of money, with a good one they save you the money that you pay them through experience and knowledge.

Often bad mechanics will try fixing cars by buying and replacing parts. Sometimes it’s smarter going to a trusted mechanic (that is a little more expensive) who knows how to troubleshoot and replace one part for less than the cost of a bad mechanic that will try a bunch of different parts.

[David Moore]

@Amber Gonion

I think you'll find this a pretty common theme on Bigger Pockets.  We have to manage the property manager, now.  Many don't like added cost.  The PM we had in Albert Lea was let go, because turnovers were not adhered to as far as contract language stipulated, and due to inconsistencies with what they said and what they do.  I've learned you have to know the  contract, and know where PM companies tend to waste your money.  Even the one we hired, we are cherrypicking away from certain suggestions, knowing how expensive they are.  You want your PM to look out for your costs.  

Managing the PM, though, is easier, if they understand you and you understand them.  I've got a good fit now....pretty happy with the arrangement.

[Alexander Lang]

Hi @David Moore, if you do find a good PM in MN please share!!! 

Yeah I hear ya, good help is hard to find and nobody manages your property as well as you do.