New to Real Estate · Pittsfield, MA · Member since 2022 · 64 posts · 19 votes
Hello BP, I'm a new investor here looking for your advice.
Ive just recently started the purchase process on not just one but two of my first investment properties! Two duplexes.
The properties are 1 1/2 hours from me so property management is a must for me. I've done a lot of homework and have called and interviewed about half a dozen company's. Of those, two of them really stuck out and made me feel confident. My idea and strategy is to use both of them one for each property. This will give me the chance to vet them and compare to see how they each work as I'm still learning the process myself. They are both agents as well and I see this as an opportunity to expand in the the future by opening my network.
Here's where my hang up is. I have been completely open and honest with both of them that this is my strategy and plan to grow with both companys as long as everything goes well. Since communicating this one company had slowed their communications with me and I get the feeling that they didn't like that idea? Im not under contract yet with either of them as I still have about a month until closing.
Do you think they take offence to this? Am I too new to use this strategy and maybe should just stick to one for now?
They are in the business to get properties to manage, so yes they may not appreciate knowing you are splitting the properties. Hindsight is good, but you should have kept it vague and simply said you had a duplex (not two and not that you were going to split them between PM). There is being transparent (the fridge in this unit is likely to fail) and telling them stuff they don't need to know (you have $1M in the bank).
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
It could be they take offense, it could be they don't want to be compared to another local management company and competing for your business, or it could be they are just really busy and don't have time to keep communicating with you when there's no guarantee of your business.
in the future, I recommend you not let the managers know that you will be spreading your properties around to competitors.
Hello BP, I'm a new investor here looking for your advice.
Ive just recently started the purchase process on not just one but two of my first investment properties! Two duplexes.
The properties are 1 1/2 hours from me so property management is a must for me. I've done a lot of homework and have called and interviewed about half a dozen company's. Of those, two of them really stuck out and made me feel confident. My idea and strategy is to use both of them one for each property. This will give me the chance to vet them and compare to see how they each work as I'm still learning the process myself. They are both agents as well and I see this as an opportunity to expand in the the future by opening my network.
Here's where my hang up is. I have been completely open and honest with both of them that this is my strategy and plan to grow with both companys as long as everything goes well. Since communicating this one company had slowed their communications with me and I get the feeling that they didn't like that idea? Im not under contract yet with either of them as I still have about a month until closing.
Do you think they take offence to this? Am I too new to use this strategy and maybe should just stick to one for now?
Thanks
You can do that. But PMC in the same city usually works in a similar fashion.
However, it would be better if you pick ne based on the following: - Check the process of how they make a repair,this is what makes one PM is better than the other one. - Check who is having more expensive fee and pick that one.
It could be they take offense, it could be they don't want to be compared to another local management company and competing for your business, or it could be they are just really busy and don't have time to keep communicating with you when there's no guarantee of your business.
in the future, I recommend you not let the managers know that you will be spreading your properties around to competitors.
Thanks for the response. I wanted full transparency and not to have to hide anything. You do bring up valid points however.
Hello BP, I'm a new investor here looking for your advice.
Ive just recently started the purchase process on not just one but two of my first investment properties! Two duplexes.
The properties are 1 1/2 hours from me so property management is a must for me. I've done a lot of homework and have called and interviewed about half a dozen company's. Of those, two of them really stuck out and made me feel confident. My idea and strategy is to use both of them one for each property. This will give me the chance to vet them and compare to see how they each work as I'm still learning the process myself. They are both agents as well and I see this as an opportunity to expand in the the future by opening my network.
Here's where my hang up is. I have been completely open and honest with both of them that this is my strategy and plan to grow with both companys as long as everything goes well. Since communicating this one company had slowed their communications with me and I get the feeling that they didn't like that idea? Im not under contract yet with either of them as I still have about a month until closing.
Do you think they take offence to this? Am I too new to use this strategy and maybe should just stick to one for now?
Thanks
You can do that. But PMC in the same city usually works in a similar fashion.
However, it would be better if you pick ne based on the following: - Check the process of how they make a repair,this is what makes one PM is better than the other one. - Check who is having more expensive fee and pick that one.
Similar fee structure.
As far as repairs that was one thing I'd be able to experience while working with both. Thanks for the response
Investor · CA - TN - FL · Member since 2022 · 19 posts · 17 votes
4y
I'm curious what led you to believe property management is a must for you given the properties are 1.5hrs away from you?
If you believe hiring a property manager is a must for you, I agree with the others that I wouldn't show your hand as to the fact that you're pitting them head-to-head next time.
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4y
@Timothy Allen we 2nd what @Nathan Gesner said about NOT being so open:) We've actually had several clients test us out this way. While we don't mind it, many PMCs do.
@Carlos Ptriawan "PMC in the same city usually works in a similar fashion" - nothing could be further from the truth! That's like saying that all real estate offices and agents are the same.
For your reading "pleasure"
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”:
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😊
They are in the business to get properties to manage, so yes they may not appreciate knowing you are splitting the properties. Hindsight is good, but you should have kept it vague and simply said you had a duplex (not two and not that you were going to split them between PM). There is being transparent (the fridge in this unit is likely to fail) and telling them stuff they don't need to know (you have $1M in the bank).
Hello BP, I'm a new investor here looking for your advice.
Ive just recently started the purchase process on not just one but two of my first investment properties! Two duplexes.
The properties are 1 1/2 hours from me so property management is a must for me. I've done a lot of homework and have called and interviewed about half a dozen company's. Of those, two of them really stuck out and made me feel confident. My idea and strategy is to use both of them one for each property. This will give me the chance to vet them and compare to see how they each work as I'm still learning the process myself. They are both agents as well and I see this as an opportunity to expand in the the future by opening my network.
Here's where my hang up is. I have been completely open and honest with both of them that this is my strategy and plan to grow with both companys as long as everything goes well. Since communicating this one company had slowed their communications with me and I get the feeling that they didn't like that idea? Im not under contract yet with either of them as I still have about a month until closing.
Do you think they take offence to this? Am I too new to use this strategy and maybe should just stick to one for now?
Thanks
Im really not understanding your question, Just use both see which provides the best value.
Real Estate Agent · Dallas-Fort Worth, TX · Member since 2021 · 116 posts · 69 votes
4y
@Timothy Allen A reputable PM should have no problem with this. One question to ask is do they require a lock in period? If they are confident in their ability to provide excellent service there should be no need to lock an owner in to something they have not experienced. Example we only require a 30 notice (just enough time to inform tenants) if an owner wished to terminate the PM agreement. Happy Investing.
