Property Management Referrals in Las Vegas
Las Vegas, NV · Member since 2015 · 28 posts · 5 votes
Property Management Referrals in Las Vegas
Most Popular Reply
Eric FernwoodBusiness Member
Realtor · Las Vegas, NV · Member since 2014 · 992 posts · 1k+ votesHello @Nick Arthor,
The property manager is the most important member of any investment team so it is critical to find the right one. Before I continue, know that I am a Realtor in Las Vegas and a member of Las Vegas Real Estate Investment Group. As you can guess from our name, real estate investments are what we do 6 or 7 days a week. Also know that we do not manage the properties our clients buy. We do work closely with a property management company we trust in all phases of the investment lifecycle. However, the one constant in life is change.
My experience is that despite good intentions, people and companies tend to lose focus and you will have to replace the property manager every few years (along with every other team member). Not good but that is what happens. Because finding a good property manager is so critical, we developed a process for finding the right one, which I will overview below. Our requirements should help you in your selection process.
What You Should Expect from a Good Property Manager
If the only thing the property manager does is to collect the rent, you have the wrong expectations. The property managers we’ve worked with provided value at all stages of the investment life cycle which we logically subdivide into four phases:
- Market Research
- Property Evaluation
- Rehab
- Property Management
Market Research
The knowledge you gain from seminars, books, podcasts and similar channels is by nature, general information. Little of this applies to any specific property in a specific location. You need detailed local information on a variety of topics and the property manager has the information you need. Some of the market research topics we require includes:
- What property type rents well in a given area? Condo, high rise, single family, duplex, single story, two story, etc.
- What configuration? Two bedroom, three car garage, large lot, etc.
- What locations are likely to do well today and into the foreseeable future.
- What rent range best matches the pool of tenants most likely to be good, long term tenants?
- What are the legislation issues (including eviction cost and time) that are likely to impact profitability?
Property Evaluation
How can you be certain that the property you are considering is a good investment? A good property manager will be able to provide the following information for any property:
- Estimated rent
- Estimated time-to-rent
- Rehab items - The rehab items a property manager will note are primarily cosmetic (paint, carpet, etc.) Cosmetic items are what tenants see in the photos when they are selecting properties to consider. Tenants assume that the water heater, HVAC, etc. all work.
Also, knowing the estimated rent, time-to-rent and approximate rehab cost will enable you to make an initial go/no-go decision on the property plus you can determine how much you can offer. I can go into more detail on this if you like.
Rehab
Every minute spent in rehab is time the property is not generating income. You want rehab to be as short as possible and as cost effective as possible (however never by cutting corners). And, you need to know which rehab items are required and which are optional. Optional rehab items should only be undertaken if they will pay for themselves in a relatively short time. This is another topic I can discuss if you are interested. So, in the rehab phase some of the key contributions the property manager should make include:
- Referrals to trusted handymen and such
- Review quotes so you know you are not overpaying or the quote is missing items.
- Before you make the final payment to the workers, the property manager must do a walk through of the property ensuring that the work is actually complete. A good property manager will likely find several small items that the workers will do for free now or you can pay for them later.
- Advise what colors, window treatments and such will appeal to the broadest range of potential renters.
- Help you select the optional rehab items in terms of increased rent or reduced time-to-rent. For example, if you learn that that an additional $1000 spent will increase the rent by $100/Mo., it is an easy decision to make. This is a place that the property manager can save you a lot of money because they can help you avoid wasting money and time on items that will not increase the rent.
Property Management
When rehab is complete it is time to get the property rented. This is the phase that, to many, is the only value of a property manager. The key duties of the property manager in this phase include:
- Generating appropriate marketing materials (photos, flyers, etc) and getting them in the right locations so your tenant pool will see them. The photos are critical. Only excellent photos of a bright, attractive and desirable property will grip the attention of prospective tenants.
- Screen prospective tenants - This is the critical task of the property manager. Unfortunately, most property managers select tenants based primarily on credit score. While credit score is somewhat important, the numerical credit score does not tell you much about the tenant. For example, what if a prospective has a very low credit score solely due to medical collections? If every thing else is excellent, they will likely become excellent long term tenant. Effective screening of prospective tenants is so critical that I cannot empathize it strongly enough. A bad tenant can turn your property into a financial nightmare. Note, effective screening only applies to credit based tenants. Cash based tenants have no financial “history” and can rarely be screened effectively. I would avoid properties that focus on cash based tenants.
- Collecting all the rent on schedule and depositing it into your account in a timely and consistent manner.
- Controlling costs. Some aspects of this include doing only the work that is required, periodic inspections and proactive maintenance.
- If necessary, pushing the eviction process as fast as the law allows.
- If there is damage (beyond reasonable wear and tear), retaining a reasonable amount of the tenants deposit.
- Quickly preparing the property after a tenant vacates so it can be rented again without delay. Turn time is lost income.
Some Key Characteristics
In order to achieve the above, some of the characteristics I would look for include the following.
Does not:
- Have an in-house maintenance department. An in-house repair staff is just another profit center to the property manager. This creates an inherent conflict of interest because in order to “make the numbers,” the repair people will be pressured to make repairs, even if they are not needed.
- Charge you an annual “renewal” fee.
- Include costs like utilities, sewer, etc. in the rent. These service fees must be separate line items (not included in the rent) which are paid by the tenant so you do not pay the property manager fees on service fees.
- Mark up repair costs. Many of the property managers I know add 10% to 20% on top of any repair charge. The only way you will know this is not occurring is if you receive the original invoice for the work performed. This assumes that the property manager does not have their own in-house maintenance staff. If they do, you will never know what the actual cost was.
Does:
- Have the in-house systems (including software) and processes to enable effective screening of prospective tenants, process move-ins and move-outs.
- Have reasonable startup and management fees.
- Have the systems and processes in place that enable tenants to report maintenance issues 24 x 7. The 24 x 7 emergency response phone number must go directly to someone on the property manager’s staff, not to a voice mail or answering service.
- Have the processes in place to detect and manage tenants who call in excessive repairs.
- Handle the entire eviction process, including going to court if necessary, for a reasonable fee. (In Las Vegas, the cost should be about $500 and take less than 30 days.)
I could go into a lot more detail but the above should get you started. We maintain our own “Property Manager Interview Questions” and if you or anyone else is interested in a copy, send me an email.
FERNWOOD Team, KW VIP Realty520 Reviews
12 Replies
- Investor · Las Vegas, NV · Member since 2013 · 131 posts · 63 votes10y
Nick, I have a great person and company that I think you should interview. They do a great job and everything can be done online. I'll PM you the contact information.
- Las Vegas, NV · Member since 2016 · 11 posts · 5 votes10y
The best I know is Phillip Dwyer at Windermere. He's a BP member and runs the Henderson REI Meet Up. Diligent, thorough and knowledgeable.
- Investor · Henderson, NV · Member since 2016 · 7 posts · 3 votes10y
I agree whole heartedly with Tami, Phillip Dwyer is the best
- Investor · Woodland Hills, CA · Member since 2016 · 51 posts · 12 votes9yWe currently manage 6 SFR homes in Las Vegas valley we are looking to grow that. We charge a very low rate compared to others and do a lot better job at managing properties with little to zero turn over. Please let us know how we can help.
- Houston, TX · Member since 2016 · 10 posts · 1 vote9yNewman Property Management is very good and works with investors all over Vegas! Message me and I'll get you their contact information! Regards, Martin Lewis
- 9yEric FernwoodBusiness MemberRealtor · Las Vegas, NV · Member since 2014 · 992 posts · 1k+ votes
Hello @Nick Arthor,
The property manager is the most important member of any investment team so it is critical to find the right one. Before I continue, know that I am a Realtor in Las Vegas and a member of Las Vegas Real Estate Investment Group. As you can guess from our name, real estate investments are what we do 6 or 7 days a week. Also know that we do not manage the properties our clients buy. We do work closely with a property management company we trust in all phases of the investment lifecycle. However, the one constant in life is change.
My experience is that despite good intentions, people and companies tend to lose focus and you will have to replace the property manager every few years (along with every other team member). Not good but that is what happens. Because finding a good property manager is so critical, we developed a process for finding the right one, which I will overview below. Our requirements should help you in your selection process.
What You Should Expect from a Good Property Manager
If the only thing the property manager does is to collect the rent, you have the wrong expectations. The property managers we’ve worked with provided value at all stages of the investment life cycle which we logically subdivide into four phases:
- Market Research
- Property Evaluation
- Rehab
- Property Management
Market Research
The knowledge you gain from seminars, books, podcasts and similar channels is by nature, general information. Little of this applies to any specific property in a specific location. You need detailed local information on a variety of topics and the property manager has the information you need. Some of the market research topics we require includes:
- What property type rents well in a given area? Condo, high rise, single family, duplex, single story, two story, etc.
- What configuration? Two bedroom, three car garage, large lot, etc.
- What locations are likely to do well today and into the foreseeable future.
- What rent range best matches the pool of tenants most likely to be good, long term tenants?
- What are the legislation issues (including eviction cost and time) that are likely to impact profitability?
Property Evaluation
How can you be certain that the property you are considering is a good investment? A good property manager will be able to provide the following information for any property:
- Estimated rent
- Estimated time-to-rent
- Rehab items - The rehab items a property manager will note are primarily cosmetic (paint, carpet, etc.) Cosmetic items are what tenants see in the photos when they are selecting properties to consider. Tenants assume that the water heater, HVAC, etc. all work.
Also, knowing the estimated rent, time-to-rent and approximate rehab cost will enable you to make an initial go/no-go decision on the property plus you can determine how much you can offer. I can go into more detail on this if you like.
Rehab
Every minute spent in rehab is time the property is not generating income. You want rehab to be as short as possible and as cost effective as possible (however never by cutting corners). And, you need to know which rehab items are required and which are optional. Optional rehab items should only be undertaken if they will pay for themselves in a relatively short time. This is another topic I can discuss if you are interested. So, in the rehab phase some of the key contributions the property manager should make include:
- Referrals to trusted handymen and such
- Review quotes so you know you are not overpaying or the quote is missing items.
- Before you make the final payment to the workers, the property manager must do a walk through of the property ensuring that the work is actually complete. A good property manager will likely find several small items that the workers will do for free now or you can pay for them later.
- Advise what colors, window treatments and such will appeal to the broadest range of potential renters.
- Help you select the optional rehab items in terms of increased rent or reduced time-to-rent. For example, if you learn that that an additional $1000 spent will increase the rent by $100/Mo., it is an easy decision to make. This is a place that the property manager can save you a lot of money because they can help you avoid wasting money and time on items that will not increase the rent.
Property Management
When rehab is complete it is time to get the property rented. This is the phase that, to many, is the only value of a property manager. The key duties of the property manager in this phase include:
- Generating appropriate marketing materials (photos, flyers, etc) and getting them in the right locations so your tenant pool will see them. The photos are critical. Only excellent photos of a bright, attractive and desirable property will grip the attention of prospective tenants.
- Screen prospective tenants - This is the critical task of the property manager. Unfortunately, most property managers select tenants based primarily on credit score. While credit score is somewhat important, the numerical credit score does not tell you much about the tenant. For example, what if a prospective has a very low credit score solely due to medical collections? If every thing else is excellent, they will likely become excellent long term tenant. Effective screening of prospective tenants is so critical that I cannot empathize it strongly enough. A bad tenant can turn your property into a financial nightmare. Note, effective screening only applies to credit based tenants. Cash based tenants have no financial “history” and can rarely be screened effectively. I would avoid properties that focus on cash based tenants.
- Collecting all the rent on schedule and depositing it into your account in a timely and consistent manner.
- Controlling costs. Some aspects of this include doing only the work that is required, periodic inspections and proactive maintenance.
- If necessary, pushing the eviction process as fast as the law allows.
- If there is damage (beyond reasonable wear and tear), retaining a reasonable amount of the tenants deposit.
- Quickly preparing the property after a tenant vacates so it can be rented again without delay. Turn time is lost income.
Some Key Characteristics
In order to achieve the above, some of the characteristics I would look for include the following.
Does not:
- Have an in-house maintenance department. An in-house repair staff is just another profit center to the property manager. This creates an inherent conflict of interest because in order to “make the numbers,” the repair people will be pressured to make repairs, even if they are not needed.
- Charge you an annual “renewal” fee.
- Include costs like utilities, sewer, etc. in the rent. These service fees must be separate line items (not included in the rent) which are paid by the tenant so you do not pay the property manager fees on service fees.
- Mark up repair costs. Many of the property managers I know add 10% to 20% on top of any repair charge. The only way you will know this is not occurring is if you receive the original invoice for the work performed. This assumes that the property manager does not have their own in-house maintenance staff. If they do, you will never know what the actual cost was.
Does:
- Have the in-house systems (including software) and processes to enable effective screening of prospective tenants, process move-ins and move-outs.
- Have reasonable startup and management fees.
- Have the systems and processes in place that enable tenants to report maintenance issues 24 x 7. The 24 x 7 emergency response phone number must go directly to someone on the property manager’s staff, not to a voice mail or answering service.
- Have the processes in place to detect and manage tenants who call in excessive repairs.
- Handle the entire eviction process, including going to court if necessary, for a reasonable fee. (In Las Vegas, the cost should be about $500 and take less than 30 days.)
I could go into a lot more detail but the above should get you started. We maintain our own “Property Manager Interview Questions” and if you or anyone else is interested in a copy, send me an email.
FERNWOOD Team, KW VIP Realty520 Reviews - Real Estate Broker · Malone, NY · Member since 2013 · 345 posts · 70 votes9yNick Arthor Call Shawn Cunningham with the Cunningham Group. They're excellent to work with!
- Orange, CA · Member since 2016 · 5 posts · 0 votes9yPlease disregard above post. It was posted accidentally.
- 9yRobert AdamsBusiness MemberReal Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
We have an in house property manager if needed.
Phil is also great!
The Adams Team at Rothwell Gornt Companies4.970 Reviews - 9yJason H.Pro MemberRental Property Investor · Pittsburgh | Chicago · Member since 2016 · 115 posts · 54 votes
@Nick Arthor Hi Nick, I am in the process of looking for PM's in Vegas as well, would be interested in hearing your experience since posting and if you made any progress on potential teams you've been interviewing. Feel free to connect and share.
@Joe Abughazaleh Hi Joe, would be interested to get your recommendation as well!
- Monterey Park, CA · Member since 2017 · 2 posts · 0 votes9y
Hi @Joe Abughazaleh, could you please PM me your recommendation for PM as well? thanks!
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