Out of State Property Management for Large Apartment Buildings

[Jason Mak]

Hi there - I live in Los Angeles and own/manage my own portfolio of multifamily in LA county.  I have an in-house property management team and it works - I like it because I can control costs, be quick and actionable on delinquencies and other things that may come up.   It all works because I own the property and as the old adage goes "no one cares more about your property than yourself".

However, in contemplating going out of state - I know I'm not the first one here to ask this question - I wanted to some collective feedback and experiences from other people in my shoes.  Where are you investing?   How are you finding the property managers?  How are you holding them accountable?  What type of day to day/week to week/month to month involvement do you have as the owner?  Has the general experience been harder or easier than you expected?  And are the property managers meeting your expectations as well as your pro-forma?

Asking folks who are acquiring multifamily of 50-100 units buildings, and not for the turn-key SFH deals. Also - if you have any specific examples or experiences to share, rather than the typical "it depends"/general advice, that would be greatly appreciated!

[Jason Mak]

HI Jason,

If you want to take (some)  of the risk out of it, why not think about going boots on the ground until you get the place stabilized.

Maybe pick the worst "Down Unit" and move in to it with a cot, a microwave and the utilities turned on. 

Have the workmen start with that unit (where you sleep) (and all other non-rented units), then when it's almost done move out and put a renter in and move to another un-rented unit.

That way you have  local base of operations and can manage the rehab as well as manage and hire a manager and maintenance for the place, while managing the (one you know better) back home by phone.

If you can turn a "Down Unit" into production with a renter living in it, in 20 days, consider yourself to have a good team (unless product shortages are an issue, or permits take forever there. 

 It might be uncomfortable, but you will be able to focus your skills and time on the new place better if you are on premises 100% of the time vs letting it be the one you manage from afar.

You can fly home every once in a while or use iPhone FaceTime to stay close to loved ones from your base of operations.

Good Luck!

@Scott Mac. I absolutely love that idea (though my wife would hate it! haha)