Can I please get some recommendations on effective prop mgr?

Question

Hello, I have 12 doors in the Hammond area of NW Indiana.  I recently retired and need to be taking home a better percentage of my gross rent than I am right now.  I would love to find a manager with a good team to do turns quickly and affordably.  What does a clean-out and painting and floors cost for other property managers in 2022?

I have tried to communicate my needs with my manager, but I can no longer afford to continue as is. Also if anyone knows a great realtor, who has a team of contractors that could affordably get my properties ready for sale, most of my places are single-family houses.   I would be interested to talk with someone who could help me get the market rate if I sold them.

Thanks for any ideas you may have.

Gratefully, John

Mitchell Roadruck · Answer

Hey @John Becker,

I am an agent/investor in NWI. I can connect you with my recommended property manager in NWI to manage the properties you'd like to hold. I would love to interview to list the homes you'd like to sell as well, if you're open to it. I will send you a connection request.

Mitch

John Warren · Answer

@John Becker sounds like you are in a tough spot for sure. You should connect with @Tim Polk to see if he can help you get the properties for sale.

In terms of turn over costs and painting, I doubt switching management companies is going to help you keep your costs down on turn over. The management companies typically look at maintenance as more of a profit center than they do as a cost to control. With your having retired, have you considered taking over management yourself? If you decide to hold onto the properties, you could probably greatly increase the bottom line this way.

Drew Sygit · Answer

@John Becker

Even if someone give you a referral, what meets their expectations, may not meet yours.

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😊

Tom O. · Answer

For property management I know realtor Joseph McCormick. He would probably do a decent job but I can't speak from personal experience.

To sell the homes I would use my realtor Jarred Carr. He's terrific. I've used him on two purchases and other stuff. He's very responsive and well-respected.

https://www.atproperties.com/a...

Wesley N. · Answer

I do commercial but I could get you some references

Wesley N. · Answer

I do commercial but I could get you some references

Nathan Gesner · Answer

The cost of materials and labor is extremely high. If you think the manager is over-charging, then you need to contact some contractors yourself to check the pricing and verify.

It sounds as if you need to focus on listing the property and selling "as is" before the market cools and you lose the opportunity to get top dollar.