Property Management recommendations in Austin, TX

[Ryan Fenton]

Hi all-

I am looking into hiring a property management company for my properties and wanted to know if there are any recommendations for full service groups in the Austin area. Thanks in advance for your help!

[Issac San Miguel]

Hey Ryan!
I have a few PMs I could recommend.

What types of properties are we talking about?

Thanks,

Issac

[Tam Nguyen]

I’m also looking for the same pls PM me as well.  Thanks 

[Drew Sygit]

@Ryan Fenton

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

[Ryan Fenton]

Quote from @Issac San Miguel:

Hey Ryan!
I have a few PMs I could recommend.

What types of properties are we talking about?

Thanks,

Issac

 Hi Issac- This is for mainly single family and duplexes

[Ryan Fenton]

Quote from @Drew Sygit:

@Ryan Fenton

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

 Thanks @Drew Sygit, this is very helpful to understand!

[Hunter Mandel]

Quote from @Issac San Miguel:

Hey Ryan!
I have a few PMs I could recommend.

What types of properties are we talking about?

Thanks,

Issac

 Hey Isaac, I'm also looking for PMs if you could recommend! I have a single family home that I'm looking to rent out. Any help is appreciated. 

[Wale Lawal]

Here is a comprehensive list of 32 questions I like to ask a potential Property Manager:

1. How long have you been in business?

2. What geographic area/s do you cover?

3. How many units do you manage?

4. How many properties does each regional office manage?

5. How many do you own yourself?

6. Do you specialize or concentrate in a particular class of property?

7. What kind of due diligence services do you provide? What is the potential cost if

the deal doesn’t close?

8. Do you take on value-add properties?

9. Describe your process for managing a moderate property renovation.

a. How is the status of the work tracked?

b. Who manages the contractors?

c. How are invoices tracked and verified against bids?

d. Who approves the work before the contractor is paid?

e. What fees do you charge for renovation/cap ex expenses?

10. What are some of the names of nearby properties that you are currently

managing?

11. Has your firm been sued by one of its clients in the last 5 years?

12. Have you managed any properties that went into foreclosure and if so, why do you

feel this happened?

13. What special training do your managers receive from your company?

14. How do you manage a property’s online reputation?

15. What do you see as the on-site manager’s duties? (turnover, cleaning, repair)

16. Can I interview and approve the on-site manager?

17. What kind of relationship do you want your property manager to have with the

owner?

18. How often do you communicate with owners?

19. What is the protocol for communication? Will I be talking to you, the regional or the

property manager?

20. Will you provide a written management plan?

21. What % of gross rent do you charge for management fee?

22. What is included with the monthly management fee?

23. Which property management software do you use?

24. How much time do you typically take to do a make ready?

25. Can tenants pay with auto-withdrawal? What other methods are available to them?

26. Do you require me to list the property with you upon its sale?

27. Will you give me your cell phone number or home number?

28. What are some of the reasons we should use your company?

29. What are the growth goals of your company over the next 5 years?

30. Describe some of your weaknesses and how you hope to improve?

31. Can you send me some redacted financial statements of properties you’re

managing?

32. Can you give me contact information for 3 current clients who have buildings like

mine?

Goodluck

[Jordan Moorhead]

@Ryan Fenton the guys at Tower Property Management are great