Has anyone used FirstService Residential as their PM?

Question

They're the largest PM company in US and Canada, but there aren't any posts mentioning them here (I searched) ...? Their rates seem really good, 8% for monthly rentals, and 4% for leases. Online reviews seem to indicate they're mostly okay - I tend to discount 1-star ratings for anything (if you're one of those people, please stop; your whining annoys more reasonably minded people).

Ryan Karel · Answer

I own a LTR condo in florida. I manage the property myself. The HOA uses First Service as a way to collect dues each month but they are in no capacity the property managers. I will say they make it easy to pay your HOA fees each month.

Will Fraser · Answer

We're the #1 (insert Metric that almost nobody has ever heard of) in the (insert geographic boundary to substantiate claim)! We leverage (insert unverifiable skill) and use sytems (i.e. we exist in the 21st century and use the internet) to do (insert thing that all PM companies do).

For that we only charge 90% of Net rents.

Woo!

Drew Sygit · Answer

@Khai Hong never fall for hype!

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😊

Khai Hong · Answer

Hi @Ryan Karel, any lessons-learned you could share about self-managing? Do you plan on growing your portfolio, or just cash out on this one when you retire?

Khai Hong · Answer

HI @Will Fraser, you're right. I fell for their marketing propaganda about being "North America’s property management leader", that doesn't mean they're the biggest. They only operate in the following markets:

• Alabama
• Alberta
• Arizona
• British Columbia
• California
• Delaware
• Florida
• Georgia
• Illinois
• Maryland
• Massachusetts
• Minnesota
• Missouri/Kansas
• Nevada
• New Jersey
• New York
• North Carolina
• Ontario
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Texas
• Virginia
• Washington DC
• West Virginia

There's a nice list here of the biggest PM companies, a few of the ones included are a bit puzzling because of their low numbers Top Multifamily Property Management Firms 2021 – Multifamily Real Estate News (multihousingnews.com)How about your own company, what are your rates? I know rates aren't everything, but they are a limiting factor. What makes you stand out? I recently catalogued about 1000 of the latest BP posts, and a good number of them were people looking for a good PM, so let's hear your pitch :) I will probably try getting into the US market in a few years' time, myself.

Will Fraser · Answer

In my opinion your sources may be off here. I own a PM company in US and have never even heard of FirstService Residential and never in the conversation of the "nationwide aspirants" that every hedge fund and VC group seems to be swooning over.

So, perhaps it is the child of Blackwater or some other MegaBuying entity that handles the management?

Has anyone used FirstService Residential as their PM?

Has anyone used FirstService Residential as their PM?

Most Popular Reply

6 Replies