What is most important to you when working with a property manager?
Hi All,
I am working closely with a company to identify what key factors are most important to us when choosing a Property Management company. I own 6 doors currently and know what I think, but I would love to hear what factors are most important to y'all (communication, on time payment, guaranteed rent. eviction assistance, etc.)
No wrong answers!
I want someone who owns property themselves. The most ideal back story a property manager can have is they were managing their units and decided to help other people with the systems they use. I am still willing to use someone who went the other order, property manager turned pm + investor, but this is less ideal.
Attention to detail and communication are key! A good PM is one that understands things are going to go wrong but has transparent and effective processes in place to be as proactive about issues as possible.
Another thing to look for is if their incentives line up with yours. Does their company benefit from things that don't benefit you like turnover/evictions or are they designed to better align with your interests?
Food for thought!
Hey @Dan J.,
I agree with both @Nathan Grabau and @Douglas Patterson said, what is their motivation for managing properties and are they good communicators.
The other things I would add to that are, what do their fees look like? Are they nickel and diming me with admin fees and opening the filing cabinet fees? Also if I continue to bring them doors (or many doors) are they offering discounts/ better rates or are they sticking to flat rates.
hope that helps and best of luck 🤝🍀
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
Experience and focus should be the key factors you seek. There is a huge difference between a company or individual that manages one or two dozen units for 5 - 10 years, and someone that has managed hundreds of units for 10 plus years. While some full service brokerages CAN do sales and PM, if their focus is sales, and they just provide PM to a few clients as a courtesy, they are not likely to have nearly the experience of a brokerage that has a separate PM group that is full time PM.
Here are my beefs with property managers and going forward what I look for:
1. Communication. I don't like how I will reach out and I don't hear back sometimes literal days. Also when my rental is on the market, I would like weekly updates on activity, feedback, etc. Ask about frequency but also set an expectation.
2. As mentioned before, the fees are a little concerning. Even though it is supposed to be 10%, it ends up being closer to 15%-18%. I would ask how they structure their fees with vendors (do they upcharge you or not).
3. What do they do to market the listings? The problem now is that they can't list on Facebook Marketplace. You will have to do it and funnel to your property manager (that's what I did and one of my rentals rented in a week when it was taking literal months). Ask how that process will work.
@Nathan Grabau totally agree. It would make me hesitant for sure, but not a deal breaker. Definitely situational though
@Douglas Patterson - Communication is big for me as well. I think there is a good balance where we as owners can be informed but not bombarded with subscribed emails. Alignment with interests is a huge must as well.
@Ryan Lesley - Fee scheduling is huge as well. I have experienced both sides where I paid little fees and they did not do anything and I have paid every fee under the sun. I also think past a certain door count a flat rate or discount is best practice for happy customers and a continued relationship.
@Richard F. - Aloha! Experience is HUGE. I have gone through the eviction process with a PM who had never done it. They waited months for "the tenant to leave." I tend to avoid brokerages as well, I am not a fan of mixing sides of the business unless their company has a different division with a different person dedicated to PM.
@Rick Albert - Reaching out and not hearing back is a pain point for everyone it seems. Market listings is a huge topic as well. As property owners we rely on the income to offset the debt associated (usually). All great points
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,160
- Votes |
- 9,543
- Posts
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
For me it is communication, I despise finding out issues on my own. I want everything laid out as soon as it happens.
@Eliott Elias totally agree. I just had a pipe burst in December, I found out about it in early February...
If there is an issue what do you think is an appropriate or reasonable response time to loop in the owner?
EXPERIENCE rules. Some owners want to be really involved and some just want to be notified of big repairs. Being flexible to work with whatever the investor wants is key. We have an online portal where owners can sign into and see who paid, minor maintenance etc. We notify owners and get approval for any repair that would be over $250 before it's done (unless it's an emergency after hours such as a burst pipe or no heat in the winter - east coast here!) And then we notify next business day or shoot an email overnight when we call the contractor and let them know what's going on.
Communication is big. It should be timely and honest. Too many managers are "too busy" to update owners and you only hear from them when you chase them down. A good PM will communicate proactively so you don't have to remember to babysit them. And they'll be honest with bad news, rather than try to hide it.
I also agree with finding someone that personally owns rentals. Bonus points if they own rentals that are managed by someone else so they understand pain points from the Landlord perspective.
Being a Real Estate Project Manager (PM) is no easy feat. You must have an eye for detail and excellent communication skills to succeed. PMs must understand that issues may arise, but they need to be proactive in setting up processes to ensure these issues are dealt with quickly and transparently. Having good attention to detail and clear communication are essential when it comes to managing Real Estate projects effectively. A great PM will know what steps can be taken ahead of time to minimize the potential for problems and maximize success! With the right approach, Real Estate project management can be both rewarding and successful!
-
Real Estate Agent Texas (#005416)
- 832-889-5607
- http://www.buywithjaythomas.com
- [email protected]
@Nathan Gesner - Could not agree more! The best policy is honesty in my opinion / experience. For you personally what do you consider timely?
@Laura Stayton - I like the $250 threshold idea. It seems like it would provide transparency and put the owners mind at ease if there is "an issue" that is large they have a front-loaded idea of cost or will be notified if it exceeds.
@Jay Thomas - Very well said. I think both parties understand it is a strenuous process (at times) but does not have to be. I think generally the good ones are so desirable because of this.
#2 Managing Your Property Contributor
- Property Manager
- Birmingham, MI
- 3,607
- Votes |
- 7,028
- Posts
#2 Managing Your Property Contributor
- Property Manager
- Birmingham, MI
No one's perfect, but you get nowhere without wll thought-out systems and procedures.
Quote from @Dan J.:
@Nathan Gesner - Could not agree more! The best policy is honesty in my opinion / experience. For you personally what do you consider timely?
When you reach out to the PM, they should respond within a day, even if it's just to tell you that they'll get back to you in three days. I hear too many complaints from people that reach out to their PM and don't get a response for weeks.
I train my staff to be proactive in communication. Instead of waiting for owners to call with questions, we send them regular updates when there are any changes - or upcoming changes - to their income stream. Tenant gives notice, we notify. We need to spend $400 on plumbing, we notify. Rent is short because we paid their annual HOA dues for them this month, we notify. They have extra income because the Tenant is breaking the lease and paying an early termination fee, we notify.
Proactive communication shows that we are in control and puts the Landlord at ease.
@Nathan Gesner Yes! We very much align. I tend to think open and honest communication is the best policy. This does include bad news as well. I have found most owners understand bad things happen, they just don't want to be in the dark.
@Jesse Sasomsup - Great read. Love the idea of not settling for the one size fits all approach. Different submarkets require different strategies even if they are in the same metro area in my opinion. I could imagine dealing with a tenant leaning market like LA has its challenges, I like how you laid out your goals when it comes to tech, strategy, communication, and owner needs.
2. Communication is essential.
3. Transparency.
As a PM myself, I strictly manage and put myself in the homeowner's shoes. I also believe in partnering with good people according to the criteria above on my end. Number of units shouldn't matter but quality does and reviews are crucial from google to airbnb. Huge.
Also make sure they have experience. Lots of people are in this business now and co-hosting experience on the VR platforms is crucial not to mention a myriad of other elements as well.
Quote from @Dan J.:
Hi All,
I am working closely with a company to identify what key factors are most important to us when choosing a Property Management company. I own 6 doors currently and know what I think, but I would love to hear what factors are most important to y'all (communication, on time payment, guaranteed rent. eviction assistance, etc.)
No wrong answers!
Watch out for the hidden fees!