Experience with Property Managers

[Justin Monday]

Hello BP,

I am looking into Property Management in the central valley, and I wanted to ask you guys what your experience with property manager was/is like.

What are the most valued things you believe they contribute?

What are the worst things about them? 

General issues with how they do business?

General praises for how they do business?

Thanks in advance!

[Chad Hale]

As both a property owner/investor and professional property manager here are some of the common reasons for utilizing a PM.  Everyone will place a different value on each of these and determine if a PM is worth it for them or not.

Here are some "value-add" items to consider for utilizing a PM. I recognize everyone will value each of these differently.

- No worries or stress for you regarding the daily running of your property

- You can focus on other things, core business, family, relaxation, etc

- Professionally managed units puts distance between you and the tenants. PM can be the bad guys.

- Liability protection

- Local to address issues / keep eye on property / enforce rules / verify any maintenance work is done correctly

- Manage the tenants

- Maintain compliance of current housing / tenant laws

- Handle all emergencies - no late night or weekend calls

- Monthly activity/PnL statements

- Provide tax withholding (required in CA for out of state landlords)

- Year end statements for taxes

- Tenant screening (most important thing regarding properties)

- Tenant selection

- Lease signing using professionally developed agreements (I use CAR and CAA in CA)

- Advertising / marketing property for lease

- Rent collection (proper legal notices served when late)

- Annual rent comparison and adjustments/increases

The worst things about "bad" PM's or any business/partner for that matter.

  - slow, bad, inaccurate communication

  - nickle/dime expenses

  - add overhead unnecessarily (eg mark up on bills)

I would find a new PM if you are not happy with your current PM and do not believe you can resolve the issues in a timely fashion.  

One additional thought, you hire the person not a collection of thoughts and tick boxes.  In other words a person of integrity and commitment will likely satisfy all of your needs and then some.

~Chad