Property Management in Central Arkansas

12 Replies

For the first official topic. 

For those who use property management who do you use, why, and would you recommend them. What are their terms and do you have any affiliation with them other than being a client?

If you are not using property management why not, how many properties do you manage, and how do you manage them?

Find a way to bring it in house so that you can have some control but it is still run legally. Once you hit 10 or so you will start having a positive equity curve... one of the recent podcasts with Brie Schmidt (Episode 128) outlined a genius structure that they are using for their in-house property management. Around 33 Minutes she starts talking about the processes they do and around 37 minutes breaks down the structure.

If that isn't your cup of tea, then all I can say is I have yet to hear a residential PM that doesn't have some negative feedback locally. Just interview them like you're hiring an employee!

Cheers

Hi Eric M. I dont use property managers because the ones in my area don't fit my criteria. I see how their own properties are maintained. ....

Hi all,

I just wanted to bump this thread to see if there are any more thoughts on the topic. I have been looking at investing in real estate in this area, but see the consistently poor reviews of the property management companies around here, which makes me hesitant. I would like to be as hands-off as possible in my investment, and I happen to have a colleague a few hours away who's thrilled with his property management company. Makes me wonder if I should look in that area instead of here.

Thanks!

@Rachel Fazio ,

I have used two different property management companies in two different states and have been pleased with both. One more than the other. Hopefully, I will be closing on another house next month. It will be my primary residence and I will convert it to a rental in the future. 

As to the poor reviews, I don't pay to much attention to online reviews. It is much easier to get compliant online than compliments. 

What companies have you looked at? I just started looking into this stuff in the past week. Rainey seems to be the dominant company on Craigslist.

Originally posted by @Paul Thompson :

For the first official topic. 

For those who use property management who do you use, why, and would you recommend them. What are their terms and do you have any affiliation with them other than being a client?

If you are not using property management why not, how many properties do you manage, and how do you manage them?

I use two different companies out of state. Being out of state I have no choice but to use management co. 

1) They take 10% of monthly rent, 1/2 the first month rent with new tenants, walk through inspections every six month when occupied, weekly walk through when unoccupied, they coordinate repairs through multiple contractors (some stuff in priced reasonably other not so much), they do all the tenant screening. They receive rents at the beginning of the month and direct deposit in the 15th. They still use snail mail for mailing receipts etc which can be tedious. Send me a 1099 at the end of the year.

2) 8% of the monthly, 1/2 the first month, 250$ with renewed lease, have their own handy men who have been cheap in regards to repair cost, they get preapproval from me on all repairs. They screen all tenants. Direct deposit money in my account on the second of the month. They use docusign system which is nice. I sign all lease and repair request electronically. Dont recall how I will get tax statements. Just started using them in January.

@Steve Burke - I typed "Little Rock Property Management Companies" into Google and read the reviews for the first 7 that showed up! I did go look at a house the other day though, and the realtor who showed it to me also has a property management company. Interesting he doesn't advertise. I tend to think those that don't might be hidden gems, so maybe there's hope yet :) 

Originally posted by @Rachel Fazio :

@Steve Burke - I typed "Little Rock Property Management Companies" into Google and read the reviews for the first 7 that showed up! I did go look at a house the other day though, and the realtor who showed it to me also has a property management company. Interesting he doesn't advertise. I tend to think those that don't might be hidden gems, so maybe there's hope yet :) 

 I see what you mean. The first company I have worked with was referred to me by my realtor when I could not sell after the markets went to crap back in 2010. Second company was in a small market and there was only two choices. Met with the owner of that company and could tell he knew what he was doing. Had spreadsheets showing occupancy rates etc. Guaranteed occupancy in 30 days. Real sharp. Just checked them on Google reviews and they are 4.5 out of 5 with 43 reviews. 

My advice is meet with prop managers and turn on your BS meter before you meet them.

Hi, @Rachel Fazio .

It's a long story, but I'm serving as the 2017 President of the Central AR chapter of the National Association of Residential Property Managers (NARPM).  We have 13 professional members that represent several excellent management companies, a few of which came up when I did the same search you mentioned above.  

NARPM membership means that the property manager is committed to high standards and service for both owners and residents.

I'd be happy to refer you to any of the managers if you want me to.

Best wishes to you on your journey to real estate investing success!

Does anybody here take part in the Meetup Group for real estate investors? I joined the group but have not attended any of the meetings. I have been to busy with my new job but want to start networking attending some of the meetings. 

@Steve Burke - I was signed up for the June meeting here but they just moved it from a date when I could go to a date when I have a prior obligation :( I hope to be able to make the July meeting.

@Steve Burke and @Rachel Fazio

If you are talking about the CARREIA meetup group yes I am an active member. the website is www.carreia.com. My affiliation is that I'm a member and I host one of the sub-group discussion meetings. It is a good place to network and learn about real estate investing. Most of my closest investors friends were found as a result of that group.

If you come to one of the meetings stop by and say hi. 

@Paul Thompson I do use a PM but it's for the suburbs outside of LR/NLR. I'm also an OOS investor so there's an impracticality of managing 30+ units from my home office.

I skewed away from the "realtor that also does PM" and stuck with a PM company. Now the owner is also a realtor and what I value is that if I'm looking at new deals I get differentiation between: "I can manage that if you buy it" vs. "I'd want to manage that". But we also have had conversations about 1.) why I've bought what I've bought, 2.) how I want them maintained, 3.) details on the PM fee structure, etc.

Taking the "what I pay" and "why I use a PM" out of it I think the majority of PM issues arise because of bad communication. And it goes both ways.

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