Property Management for Small Apartment

11 Replies

Hi all,

Simple question for you guys.  I hope to be closing on a small apartment complex (10 units) in south minnneapolis in the next few months.  I'm looking for an awesome property management company, preferably one that manages properties similar in size to this one.  Anyone out there have any suggestions on PM's in the area?  

Thanks!

@Eli Sunderland

I have a four plex in Crystal, and four SFR in Southern, MN. We self manage them all. I tried a PM company last summer, and while I learned some stuff, I found their services way too expensive. If you find a good one, I'd like to hear, as I'm looking to move into larger MF.

@David Moore - Ya, I don't use a PM company for the duplex I've got right now, but since I'm getting into the bigger Multifamily space, I figured it made sense to start building relationships with the best PM's in the area!  

Hey Eli,

Congrats on the new investment! That's pretty awesome news man.

What's the tenant situation right now? Is it possible to hire one the tenants to do some property maintenance? I heard of people who like to give discounts on rent for those services, and it's often a more affordable alternative than a full-time PM company!

Hope that's a useful idea!

Duane

I self manage my properties now. I have used Greenwell Property Management in the past - they were really good and easy to get along with, and always found good tenants. I learned a lot from them while they were managing my properties.

I think there is an inherent conflict of interest between the property manager and property owner. The property manager is protecting _their_ income by making the tenant happy at almost any cost and there is little concern about the profitability of the property for the property owner. This is fine if the property owner is looking for appreciation, but if the property owner is looking for cash flow it can be a problem.

Eli.  Lots of good options out there in S. Minneapolis.  I am not familiar with the BP policy of mentioning companies, etc.  I'd steer clear of the large companies that market the most and talk to the mid size/smaller ones.  Your best option is to choose a company that already manages in that neighborhood/block.  3 to 4 companies off the top of my head would all be good fits.  Regardless of who you select, make sure you thoroughly review the property management agreement on the legal and business side.  Specifically, look to the three buckets (% monthly fee of gross income, new rent/renewal fee, hourly/labor fees).  Like anything in business, don't be fooled by the low % thrown out.  Also ask if the property management company collects fees on the leasing side from the applicant--not the application fee--a commission (a few larger companies do).  As with any business, ask for client referrals.  

Good luck and congrats!

My firm, Real-Time Leasing located in Eagan, MN manages everything from SFH, duplexes and small multi-family buildings. We have been in business since 2001 and do offer a multi-family discount on our rates (call for details). Take a look at our website and feel free to call me personally or schedule an appt. with me to talk about your options. My two cents when choosing a company is to ensure that they are accredited and licensed, there are many choices to choose from, but it is important that you find a good fit for your needs as an investor.

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