Springfield Property Management

[Phillip Dakhnovets]

Great cash flows in Springfield (Ohio) market with a VERY strong rental demand. HOWEVER, no reliable property management available. Obvious business opportunity with lots of inventory for a reliable property manager. 

If you know of someone please let me know.

Thanks,

Phillip

[Carla Kordab]

Hi Philip! My PM team is happy to help, let's connect on a DM.

[Corby Goade]

In a market that size, there is definitely reliable property management, but you might have to kiss a lot of frogs to find one. Is property management regulated in Ohio? That can make a difference in how you screen and interview. 

Something else to consider, if you'll endulge me...many new investors don't know what GOOD property management looks like. They have very high expectations for communication and value. You have to keep in mind that if you are renting a place for $1500, that property manager is grossing somethign around $120 per month. That's not enough to do monthly inspections, weekly calls with you and proactively check in every time they hear from the tenant. I'd encourage you to look at property management more like insurance rather than a service- when the stuff hits the fan, they step in and take care of business for you so that it doesn't create havoc or stress in your life. 

A good property manager will have an online portal that you can log in to at any time and see the financials and maintenance records for your property. You'll get monthly statements that reflect that and you should be notified (not asked) every time there is a maintenance issue below a certain predetermined threshold. You should not be involved at all in the tenant selection process. They should return your non-emergency calls and emails within one business day. They should have an easy to understand contract that isn't littered with misc fees beyond their percentage. 

Best of luck to you- please feel free to reach out if you could use help screening you PMs!

[Patrick Drury]

@Phillip Dakhnovets
Springfield is a smaller tertiary market in OH, meaning your PM options will be significantly fewer than those of Columbus, Cincy, and Cleveland. Turn over every rock possible and make sure your expectations fit what they provide, so there isn't a miscommunication or misunderstanding of what they do and don't do. 

[Drew Sygit]

@Phillip Dakhnovets

In 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😊