Property Management companies

9 Replies

I currently live far from where I am going to be investing.  I need to find a good, honest, not going to rip you off, property manager in the Sioux Falls, SD area.  I have a decent one in the Ft. Myers area and would love to find one similar or better in the Sioux Falls area.  Any suggestions on how to find a good one and what kinds of questions I should ask of them?  Also, what kind of cost should I be looking at for?  I have contacted several companies and though some sound good, I am not sure their offers are as good as they sound.  Any suggestions would be greatly appreciated.

@Ruth Ann Morris  

The questions I would ask are:

1.  What is are your fees?

2.  Who does your maintenance?

3.  What is your turnover rate for your property manger?

Fees are typically 10% and the 1st months rent.  Though, I have use PM's that will do better than this.

I like PM's that use their own maintenance people (on staff) and do not out source repair contractors.

Turnover...  It is amazing how many property management companies lose their property managers because of burn out.  PM's are like baby sitters and must know how to work with and enjoy people.  If not, they usually don't last long.  I have been using a property management company right now for over 10 years.  They have been through at least 6 PM's in that time.  And this is not exclusive to just my PM company.  I consult real estate investors across the country and I see this over and over again.

Thank you for your information.  I currently pay 10% plus first month's rent for the one I use in Florida.  One of the places I contacted did have their own maintenance guys and their rates were lower, but I was not impressed with the reviews they got.  My PM in Florida outsources their maintenance, and sometimes I feel I am getting ripped off.  I have had to question some of the repair costs because I find it unusual to have to replace some of the parts to the water system every two years, when I lived in the house 20 years and only replaced the parts once.  This is the type of stuff I am trying to avoid in Sioux Falls.

Originally posted by @Rob Caldwell :

@Ruth Ann Morris  

The questions I would ask are:

1.  What is are your fees?

2.  Who does your maintenance?

3.  What is your turnover rate for your property manger?

Fees are typically 10% and the 1st months rent.  Though, I have use PM's that will do better than this.

I like PM's that use their own maintenance people (on staff) and do not out source repair contractors.

Turnover...  It is amazing how many property management companies lose their property managers because of burn out.  PM's are like baby sitters and must know how to work with and enjoy people.  If not, they usually don't last long.  I have been using a property management company right now for over 10 years.  They have been through at least 6 PM's in that time.  And this is not exclusive to just my PM company.  I consult real estate investors across the country and I see this over and over again.

 I couldn't agree more with everything stated here. Some people are skeptical of PM companies that use their own staff for maintenance but the reality is that we charge a lot less (in relation to contractors with proper licensing and insurance) for the same work so it really ends up being a benefit to the client. 

Also, Rob is absolutely right on burnout. This industry sees some of the highest turnover of any industry I've seen so one question I would ask when interviewing companies is continuity. How do they make the transition from one PM to another seamless if and when a transition occurs? 

Hi Ruth Ann,

I would interview Real Property Management in Sioux Falls although I don't use them yet I will in the future once I buy properties in Sioux Falls.  At the moment my properties are in MN and Mitchell SD.   

Controlling maintenance & ensuring quality tenants makes or breaks the investment.  

If you are uncomfortable with the "house maintenance" pm you talked to then I would think going with a younger property and/or focusing on preventative maintenance.  

At my company our "in-house" mechanical team conducts our bi-annual inspections.  This ensures the A/C lines get flushed, filters are changed, plumbing lines are tight, etc.  Also gives us a sneak peek at the living condition of the tenant which helps us determine if they are as good as they were on paper!

If you are uncomfortable with the pm's in an area I would avoid it.  

You might want to add:

"Do you own any rental properties yourselves?"

Amazing how many PMs don't.... And owning yourself helps get you in mindset and place operating rules so they treat your property like they'd treat their own

  Mike

Thanks for the info, John Huber!  I am a newbie on the site, so don't know about all the resources yet.  Great help!

@Ruth Ann Morris  

To find out about an area and locate good PM go to IREM.org search for ARM certified property managers. Call 5 ask them what parts of the city they like/dislike and why. Ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.

You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.

Paul

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