Hi BP community, I could really use some advice from locals in the Santa Fe real estate investing community. My folks have lost all of their 2020 renters for their vacation rental property in Santa Fe. They are walking distance to the Plaza and own a 2/2. Do you have any first-hand experience and could suggest a property management company that could place and manage a full-time tenant? Thank you for your help BP community!
You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers
1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?
This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!
Daniel, I use Barker Property Management on East Marcy. I know their office is closed due to the virus, but they are working from home. Call their office number to find out how to reach them. They manage 15 units for me. I have some utilities in some units in my name. I dont know if Barker was taking care of these utilities if they would notice if something was amiss. I like to keep an eye on things. I often take care of replacing appliances so I can shop around. They generally do a good job for me. I interviewed Santa Fe Property Management to rent a couple of properties that are on the market for sale so a tenant would be month to month. They sounded good initially, but they never followed thru with a plan. They also never returned my phone calls or emails.
Barker has a website and they advertise vacancies on craigslist too. The market is strange right now due to the virus. I have a vacancy that would normally fill pretty quickly, but is taking a little longer. I hope this is of some help.
Daniel there are a lot of furnished units on the market right now due to Airbnb being shut down.