Switching property manager. Which are the best in Denver area?

Question

So, I ran into a property manager disaster story recently, and I'm looking for a good replacement. Browsing recent posts I really don't see anything more recent than 2018. Anyone have recommendations? Specifically for the Highlands Ranch and Morrison areas?

Here's the long-ish version of the story. I started out with Legacy Property Management in 2018 and they were great! Very responsive and fairly reasonable leasing and monthly management rates. Then, in December of 2021 the business was purchased by Evernest. It wasn't so bad to start, but it's culminated in a disastrous tenant turnover this month with my property in Morrison. None of the repairs or cleaning were done. Only the sanding and refinishing the wood floor was completed, but without the cleanup, so when the new tenants moved in no repairs had been made and there was sawdust over everything in the whole house. During the leadup to the tenants moving in I was sending email after email and making call after call trying to get ahold of the manager without response. Only a day AFTER the tenants started moving in did the manager get back to me. He was not very apologetic and said he'd try to schedule his handyman to complete the work, but I'd had it by then and told him I'd take over from there.

I'm concerned because my tenants in Highlands Ranch are set to move out at the end of this month and I need to find someone to take over where Evernest dropped the ball.

James Carlson · Answer

Hey @John Postma

I'd reach out to @Tyler Howell at Whole Property Management. I'm not sure they specialize per se in Highlands Ranch and Morrison, but they work as property managers everywhere in Denver. They're easy to work with, communicative, reasonable rates and they offer a good amount of protection for tenant damage and vacancies.

Just my two cents. Good luck!

Drew Sygit · Answer

@John Postma Never easy switching and many PMC's ghost you once you do.

Make sure you get copies of all leases, rent ledgers, your annual statement & corresponding 1099, etc.

Here's our standard template response:

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😊

John Postma · Answer

@Drew Sygit Thanks Drew, it's a good check-list to review with PMCs going forward. The items you reference (1099, monthly & annual statements, tenant screening, etc) are services the first PMC provided, but I hadn't thought of putting it all together as a formal checklist to review with prospective PMCs. Thanks!

@James Carlson Thanks for the recommendation James! I'll put them on the list to call.

Switching property manager. Which are the best in Denver area?

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