Real Estate Investor · Los Angeles, CA · Member since 2017 · 2 posts · 0 votes
Hey Everyone! I have a Dilemma. Im a 3 year out-of-state passive investor in the greater KCMO area. Im on my 2nd Property Management and am looking for a good recommendation for a good PM who charges fairly. My first PM was not pro-active in keeping my leases unto date and now my 2nd one is just charging incredibly too expensive.
Im looking for a PM that I can grow with. I currently have 29 units but would like to grow it to 2-3x more in the future. My current PM itemizes every little repair and charges me for it and Im wondering if there are PM that charge per day and put a management fee on top of it. I feel like the current PM penny-pinches charging me for every light bulb, door stop, and battery in smoke detectors changed.
Would you chose a PM that is very large 800+ units or a smaller operation maybe half or less?
Any recommendations from experience would be greatly appreciated!
Hey, @JP Modesto, I'd be happy to talk shop with you sometime. Right now I help run a property management company and there are about 50 units that we oversee (mostly SFR's and a number of Mult-Family buildings). We work with several subcontractors and have completed about 12 renovation or make-ready projects this year. We're not very large and we haven't done a tone of business but we are local and our core group is comprised of true Kansas City natives. Over the last 3 years I've helped strengthen & grow the management and contracting aspects of the business with the intention of continuing to grow our own portfolios as well as providing valuable service to homeowners and investors. I grew up in the industry and have lived in KC most of my life; I can tell you about the good, the bad, and the ugly here.
@JP Modesto, make sure to get competing bids and really understand their fee structure. Most are willing to provide it upfront, but some hesitate and they are the ones to avoid.
It is important to understand the property management agreement: how they pay you, WHEN they pay you, when they pay if rent is late, and their inspections policy. There is much more to property management agreements than monthly rates.
How many properties are your 29 units spread across?