Business Consultant · Calgary, Alberta · Member since 2014 · 178 posts · 36 votes
Hi All:
I feel like something is wrong. Terribly Wrong. I bought a duplex is a decent area of Bexley Ohio, and hired a property manager who I thought seemed to be a good fit. I provided a rehabed ready property and handed over to the property manager. So far after 6 months, I seem to have one issue after another, one eviction causing me $1000 repairs after the PM did not ask for the damage deposit, 2.5 months of missed rent, and $400 in eviction fees.
I sit here midway through June, and so far, my net cash flow over the last 8 months since I have owned the property is -$2800.
This is a property with NO MORTGAGE. It doesnt' seem that hard, and I really feel like I am taken advantage off living outside the country and not being able to see the property.
Can anyone recommend to me a good property manager in Columbus, OH, who can get the job done? In So far the only folks who have gotten any cash out of this are the lawyers, accountants and the property manager.
@Peter Lohmann is a BP member & he has his own property management company in Columbus, Ohio. Contact him & see if he can help solve your problem.
One thing I will suggest as an out of town(country) investor myself. Work closely with your property manager. Check the monthly statement, tenant contracts, bank deposit, repair amounts very closely. Do it on a monthly bases. Communicate with your PM.
Also find out more about Ohio state landlord & tenant Act, arm yourself with the knowledge of the local city, county by laws; it will take you some time to find all the info, but will benefit you in the long run.
Also set up your own rental requirement,like 3X rent, no eviction for the last 2 years. & see if your manager can incorporate those into their tenant screening process.
@Ram Srinivasan Sorry to hear about your misfortune. How did you vet this first PM? Did you network with other investors in the Ohio Area?
HI Christopher, I essentially Googled up property managers, and I asked each a series of questions. In the end I decided upon one which seemed be the most appropriate and adept (so I thought). Unfortunately, did not know any local investors with recommendations...
Real Estate Investor · Cypress, CA · Member since 2013 · 877 posts · 94 votes
12y
@Ram Srinivasan Was this a rush job and you had to get someone to manage the property ASAP? Do you have the time to call local real estate agents and ask for recommendations? Know is not to late to start reaching out to local investors now.
Duplex Investor · Galloway, OH · Member since 2014 · 7 posts · 4 votes
12y
Hey Ram, sorry to hear that but that's one of the reasons that I didn't hire a PM. I also own a duplex on the east side of columbus and I manage. My duplex is rented out with good tenants and I'm finishing up the single family that I have on the west side. If you need help, I might try to help you with this property. Send me a message and we can talk and maybe I can help cause I'm local and I invest here also. But otherwise good luck.
Columbus, OH · Member since 2014 · 61 posts · 19 votes
12y
I can't help you with a PM reference, but I'm really curious about how you selected the duplex. Do you have "eyes on the ground" here? It sounds like you have had more problem tenants than would be expected in a "decent area" of Bexley.
There are really nice areas in Bexley for sure, but it is a mixed bag. There are also some very rundown, high crime, areas...as there are in greater Columbus. When you vetted your PM, maybe you were screening for someone experienced managing "easier" mid and upper income properties when you needed someone not reluctant to go into an "iffy" neighborhood to collect rents and deal with problem tenants.
Columbus is definitely a smart city for investing if you choose your target areas carefully.
@Peter Lohmann is a BP member & he has his own property management company in Columbus, Ohio. Contact him & see if he can help solve your problem.
One thing I will suggest as an out of town(country) investor myself. Work closely with your property manager. Check the monthly statement, tenant contracts, bank deposit, repair amounts very closely. Do it on a monthly bases. Communicate with your PM.
Also find out more about Ohio state landlord & tenant Act, arm yourself with the knowledge of the local city, county by laws; it will take you some time to find all the info, but will benefit you in the long run.
Also set up your own rental requirement,like 3X rent, no eviction for the last 2 years. & see if your manager can incorporate those into their tenant screening process.
@Tom Yung - Honestly, communication has been a HUGE problem. He seems reluctant to communicate via voice - only email. It's a little frustrating, for sure, because I signed myself up for a 1 year contract and don't even feel like I can get out of the agreement. Very good advice on arming myself up with the knowledge. SAIT 1976. Good to hear it.
@Barbara Riley - As a foreign investor, the best eyes I could have on the ground were my realtors, inspector, and contractor who went in to do some work on the place. I got a good feel from them and felt comfortable with the investment. The property manager wasn't exactly a rush job, as I really did interview and speak with 3 different managers. I have to say Columbus is very strange in that there does not seem to be an "inventory" of property managers.. so it felt like I had slim picks. I am hoping that it will turn around, but the very feel of "hoping" does not sit well with me.
Property Manager · Columbus, OH · Member since 2012 · 309 posts · 275 votes
12y
Sorry to hear about your experience with one of my competitors, @Ram Srinivasan. Unfortunately it sounds very typical. Stories like yours are why I started a PM company in Columbus! The demand is extremely here for quality property management - we're growing like mad right now. Just responded to your private message - let me know when a good time is for you to talk on the phone. I own investment properties in town as well, so I completely understand how frustrating it is to watch cash flow in the wrong direction. We'll get you back on track.
Investor · Yokosuka, Japan · Member since 2014 · 631 posts · 184 votes
12y
@Tom Yung and @Peter Lohmann It is heartwarming and encouraging to see how BP members come to the aid of one of us in distress. @Ram Srinivasan Best of luck with the able help of the BP family!
Homeowner · Edmonton, Alberta · Member since 2013 · 35 posts · 6 votes
12y
How the heck to you PM someone haha. Seems I can't find Ram when I go to my inbox to try and search/send a message. Seeing as though you're close to me and look to be just starting out, I wanted to ask about how you got started. How you found your property and anything you did to set up a corporation or how you handle taxes? Just looking to gather info myself.
Rental Property Investor · Columbus, OH · Member since 2014 · 340 posts · 111 votes
11y
Agreed, I too am curious about the PM situation. I would also add Real Estate Pros to a list of PMs to avoid. I tried a little experiment and unfortunately had a similar experience as @Ram Srinivasan :-(
I listed the property for sale in Oct 2014, took about 9 months to sell. I also switched property managers to Century 21.
I sold it for 10K less than I bought it for. This does not include the 5K of work I put into it.
All in all, it was a disaster. I purchased it all cash, had 1000 TOTAL cash flow in 2 years,
and sold it for 10K less than I purchased for. All things considered, lost about 18K on the property.
The only person who really made money on the deal were the property managers and my realtor who I bought it and sold it with. The realtor's name is Kay Strait. At first, I thought she was a good realtor to work with, but later it turned out that she was really in it for herself and could care less about her clients. Avoid her at all costs if you come across her name.
Investor · Yokosuka, Japan · Member since 2014 · 631 posts · 184 votes
10y
@Ram Srinivasan I'm sorry to hear you had such a bad experience with this property. I tell my children and myself "Every experience is a good experience, those that don't feel like it at the time." It's hard to live by this but I guess it goes right along with "If it doesn't kill you, it makes you stronger." (I had to Google who said it: Friedrich Nietzsche.) Please don't let this experience kill you as an investor! I know a loss of $18K+ is hard to recover from and the emotional wounds are real and also hard to mend. But think of all the lessons you have learned through this bad experience! It can serve as great education. Think of the money not as a loss but an investment in your education. Turn it into a good thing by applying what you've learnt. You are now much wiser and will be much sharper in your execution of the next deal.
Good for you on sharing the names of the PM and the Realtor. That will help somebody avoid using them and being taken advantage of by them. Don't let the lessons learned go to waste.
I hope to hear about your plans for the next deal. Do approach it slowly, with the great caution, consult BP members on your ideas, if you are able to find someone to JV with, it may be a good thing. Take your time to regroup but Just don't let this stop you. Maybe a market where you can find strong BP support on the ground would be good. Network and if at all possible visit. Take time but don't stop.
Best wishes on your future endeavors an much success as an investor, even if you do it from a distance!