I put in an offer on a property that is managed by them and curious if anyone else has experience with this company. So far I'm not impressed by their Facebook page.
If I get the property, how would I determine if I should continue using this management company?
If I decide to let the management go, would I have to write up a new lease agreement (since there is already a tenant)?
Appreciate any guidance.
Hi Steve, no experience with them myself. But there's a hundred prop mgmt groups out there. I wouldn't go by FB. BBB, Yelp and such are better judges of service. I might allow them to continue managing until they don't perferm (can't lease up your house in a reasonable time or don't get maintenance don't properly or too epensive) or prices, fees start to seem unreasonable, then start shopping around. You would not have to draw a new lease if you switch mgmt companies unless you choose to. But could amend the existing lease w your tenant to name the new mgmt company. Hope that helps...question, is this a turn key property? Do you always buy properties that are already rehabbed?
@Matt Walker thanks for responding. I couldn't find anything in Yelp or BBB, so thought there might be people here.
This is not a turnkey property. This is a property on the MLS and my realtor brought it to my attention. The tenant signed a lease in November.
As the new owner the lease obligations will carry over to you (so no new lease), however you can choose to work with a different PM if you want. What you would need is a new property management agreement with the current or any new PM you go with. I agree with the other poster, there is no reason to change PMs unless you have reason to doubt the performance of this one. The change over can be a huge hassle for you and the tenants.
@Steve Johnson what is it about their FB page that you aren't impressed with?
@Larry F. thank you for your insight.
@Mike D'Arrigo it wasn't necessarily the page, it was the two bad reviews (out of two reviews). Maybe it's not an accurate assessment, hence the reason I wanted to post here.
@Steve Johnson Are the bad reviews from owners or residents? My company currently has 5 one star reviews on google. All of them are from applicants who became upset when we denied their applications.. hehe I turned off Facebook reviews because of applicants who were also denied.
Last year we took over a bunch of properties from a slumlord.. Whilst trying to fix the issues the residents said we were to blame for all their woes... Didn't matter we were new on the scene, they started blasting us every way to Sunday.
I have fired owners as well. I am not a slumlord. I have had owners get mad because I charged them $25 to clean gutters. So if you read reviews from owners try to keep an open mind.
That's not to say that management companies are perfect. No property management company is going to be perfect. I became a property manager because I disliked the other PM's in Indy. Even the best PM's may not suit your needs, and it may take you a while to find one that does meet your needs, OR you will settle.
@Lee Smith thank you for your insight. I'm unsure of the source of bad reviews and I've not been able to find anything from more reputable sources, such as BBB. For now, I don't plan on replacing the current PM.
It seems like property managers have a tough job by dealing with owners and tenants. I'll keep that in mind when communicating with them.
@Steve Johnson Rhetorical Question: Did you know that if you, as a business, pay BBB money each month they will pretty much guarantee you to have an "A"- rating?
@Steve Johnson Do a thorough due diligence on them as if you would if you were hiring a new PM company. Any red flags, then start your research. No need to change on day 1, but if you find you are unhappy with them, a little research up front will put you in a better position to make a move down the road if that becomes necessary.
@Steve Johnson Ask to see what their monthly statements look like, and when you can expect to get your rents each month.
@Steve Johnson Either way should be fine..
@Steve Johnson I would be up front and tell them which property you are looking at and that you are trying to decide if you will keep them as PM or not.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing