Managing Property in New Jersey from another state

[Michelle Garcia]

I currently own a property in Essex County, but I'm contemplating a move out of the state. However, before I make any decisions, I want to ensure that my property is left in capable hands and set up for success. I have a few questions in mind:

1. 1. When it comes to out-of-state investments, is it more beneficial to hire a property management company or a dedicated superintendent?
2. 2. Despite my efforts to research property management companies in Essex County, I have been unable to find any suitable options. Does anyone have any recommendations?
3. 3. If anyone has experience managing their properties from a different state, I would greatly appreciate hearing about your insights and lessons learned.

1. 4. Can anyone suggest any articles or books that provide guidance on how to manage properties while residing in another state?

I want to express my gratitude in advance to those who take the time to comment and share their knowledge regarding this topic.

[Ricardo R.]

@Michelle Garcia I'll give you my input and you may find it a bit biased but keep in mind, I started out as an investor, found financial freedom as an investor and still am a current investor which now happens to also run a property management company and hold a license. 

1 - It is more 'beneficial' to use a property manager, period. You will save yourself the headache of piecing together this and that from afar; if you're going out of state you want a one stop shop; one person/one company you can depend on for all of issues in managing a property, i.e. leasing, backgrounds, maintenance, photos, move out, repairs, city issues, sale, etc. etc. 

2 -  I am from NJ but I don't run business there so I wouldn't be able to help out here other than... instead of focusing on price and percentages focus instead on the services offered by the PMC.. the price you'll pay is really inconsequential for the amount of services they'll perform.. so focus on services first!

3 - Yes, we currently hold some properties out of state which we hire out to other PMC's... so just to be clear... we have been investing since 2008, have managed our own properties, now hold a license, and now own a PMC and WE HIRE AN OUT OF STATE PMC to deal with properties that are too far away - again focus on services, perhaps ensure the PMC is remote friendly i.e. they give you access to a portal online, post photos, electronic statements, etc. etc. --- you need to find a PMC that is already doing that, not the other way around. 

4 - The 4 hour work week; Landlording on Autopilot; Landlord Horror Stories; Your State's (NJ) Tenant/Landlord handbook.

Ultimately, you can manage your property from afar... I wouldn't recommend it... when it's good, it's great BUT when its not, that's when you'll realize that managing solo from afar is no good and you will wish you had someone with connections local to your property. Next anyone can manage your property even if you haggle them down to 1%... but... it a services business.... so... no sure what you'll be getting after you haggle down the person/company that will providing those services for you and being your eyes and ears on the ground... can't stress it enough... focus on services and you'll be okay.  

I hope this helps.

[Shawn Mcenteer]

Hi @Michelle Garcia I host a few REI events, next one is this Wednesday at Brix City Brewing. My go to property manager normally attends if you would like to meet one in person and network with other investors but happy to share his contact information if you cant come. please DM me.

I essentially manage my properties from another state now.  I very close but I have my lease structured in a way that makes it clear for who the tenants call with problems and I have a team in place so when I do get a call I simple reach out to the person that can handle.  I can do this from anywhere in the world

[Laura Stayton]

Quote from @Michelle Garcia:

I currently own a property in Essex County, but I'm contemplating a move out of the state. However, before I make any decisions, I want to ensure that my property is left in capable hands and set up for success. I have a few questions in mind:

1. 1. When it comes to out-of-state investments, is it more beneficial to hire a property management company or a dedicated superintendent?
2. 2. Despite my efforts to research property management companies in Essex County, I have been unable to find any suitable options. Does anyone have any recommendations?
3. 3. If anyone has experience managing their properties from a different state, I would greatly appreciate hearing about your insights and lessons learned.

1. 4. Can anyone suggest any articles or books that provide guidance on how to manage properties while residing in another state?

I want to express my gratitude in advance to those who take the time to comment and share their knowledge regarding this topic.

 Hire a reputable property manager to handle this for you.  You want someone who knows what they're doing, the landlord tenant code, how to screen applicants, have a binding lease for tenant to sign, know required way to send late letters, file in court if needed, how much time you have to handle maintenance issues... the list goes on and on.  Trust me. I've been in this business a very long time and can't tell you how many owners have come to us with tenants that haven't paid in months, owe thousands, and don't even have a binding lease.  

[Joseph Guzzardi Jr]

@Michelle Garcia Hey Michelle. Out of my portfolio I have a mix of properties I hire out and properties I manage myself. Some of these properties are actually 2 hrs away from me in south NJ. Remote "managing" can be done however you are going to need a team of multiple vendors for each particular item for you to be successful.

In my experience, investing in certain areas of Essex, Atlantic and other counties, there are very few property mgt companies who actually do a good job. This reason in particular is why I'm going to be starting my own property management company in the very near future. I'd be happy to help guide you and be a resource for you.

[Laticia Braxton]

Hi Michelle,

If you don't have any property management experience and your profit margin allows you to, I would recommend hiring a PM. I've been in property management for over 25 years and unless you are okay being burdened with the responsibility of chasing rent, collecting rent, filing in court for rent, assessing & scheduling repairs, vetting contractors, handling emergency calls 24/7, etc., you need a professional to handle these things for you.

 Some investors find it more beneficial to hire a PM so they can enjoy more of their lives, and some investors find value in doing these things themselves, so they gain the experience through trial & error. I see it as a very personal choice.

If you would like to schedule some time to discuss further, I'm always happy to help.

Laticia

[Phillip Austin]

1. 100% you should hire a PM. Sure, a reliable friend or "superintendent" may be able to do the job and they may be cheaper; however, you want a licensed professional that you don't have to micromanage and also, knows the local laws/regulations in your area for when you a legal issue arises.

2. Agreeing with @Ricardo R., local REI meetups through BiggerPockets can be a great resource. You should also check out your local NARPM (national association of residential property managers) chapter. Any worthy, professional PM will be an active member in their local NARPM chapter.

3. My best advice: DO NOT get sucked in by the cheapest PM company. You get what you pay for! Make sure you ask them how many properties they manage; not how many properties the company manages but how many your dedicated property manager manages. It's not uncommon for larger management companies to give 200-300 properties per property manager. I've been there. It's awful and very difficult for those PMs to keep up with that many property owners, tenants, maintenance issues, etc. They have no clue what's going on at your property because they have too much to handle. 

Feel free to DM me if you need additional advice. Always happy to help!

[Peter Tverdov]

Michelle you should absolutely hire a PM. It's not expensive, gives you peace of mind if done right. Essex County is a bear. It is the hardest county to evict a tenant in NJ. We won't touch it as a property management company for that very reason. Search for one on NARPM. That is an association for property management companies and any legit company belongs to it. They are excellent. Wish you luck!

[Jeff Tanner]

Hi Michelle, I agree with hiring a PM. I am in the field so I might be biased but I also have clients who came to us after trying the out-of-state property management. 

If you live far away from your property, self-management can be challenging. Regular property visits, attending to emergencies, and addressing tenant concerns may be difficult or impractical. In such cases, a property manager can provide the necessary local presence.

Hiring a property manager allows you to delegate the day-to-day responsibilities of managing your property, such as finding tenants, collecting rent, handling maintenance requests, and dealing with any issues that may arise.

As for referrals, I contact local real estate associations or landlord organizations. They may be able to provide you with a list of reputable property management companies that operate in your location. If you have a question do not hesitate to drop me a line. 

Best of luck!

[Michelle Garcia]

@Ricardo R. WOW! Thank you so much for your insight. I am not looking at price but just overall a company in New Jersey specifically in Essex County. Unfortunately, I can't seem to find an actual company just links that send me to sign up for listservs and its just a rabbit hole from there. 

I find it interesting that you don't recommend managing a property from afar. I can also understand since I can't personally check and make sure that work that needs to get done is getting done. Overall thank you for responding! I will look into the books as well. 

Thank you @Ricardo R.

 

[Michelle Garcia]

@Shawn Mcenteer thank you! will be reaching out. 

[Michelle Garcia]

Quote from @Laura Stayton:

Quote from @Michelle Garcia:

I currently own a property in Essex County, but I'm contemplating a move out of the state. However, before I make any decisions, I want to ensure that my property is left in capable hands and set up for success. I have a few questions in mind:

1. 1. When it comes to out-of-state investments, is it more beneficial to hire a property management company or a dedicated superintendent?
2. 2. Despite my efforts to research property management companies in Essex County, I have been unable to find any suitable options. Does anyone have any recommendations?
3. 3. If anyone has experience managing their properties from a different state, I would greatly appreciate hearing about your insights and lessons learned.

1. 4. Can anyone suggest any articles or books that provide guidance on how to manage properties while residing in another state?

I want to express my gratitude in advance to those who take the time to comment and share their knowledge regarding this topic.

 Hire a reputable property manager to handle this for you.  You want someone who knows what they're doing, the landlord tenant code, how to screen applicants, have a binding lease for tenant to sign, know required way to send late letters, file in court if needed, how much time you have to handle maintenance issues... the list goes on and on.  Trust me. I've been in this business a very long time and can't tell you how many owners have come to us with tenants that haven't paid in months, owe thousands, and don't even have a binding lease.  

 @Laura Stayton thank you. I will keep this in mind. Very important. 

[Michelle Garcia]

Quote from @Laticia Braxton:

Hi Michelle,

If you don't have any property management experience and your profit margin allows you to, I would recommend hiring a PM. I've been in property management for over 25 years and unless you are okay being burdened with the responsibility of chasing rent, collecting rent, filing in court for rent, assessing & scheduling repairs, vetting contractors, handling emergency calls 24/7, etc., you need a professional to handle these things for you.

 Some investors find it more beneficial to hire a PM so they can enjoy more of their lives, and some investors find value in doing these things themselves, so they gain the experience through trial & error. I see it as a very personal choice.

If you would like to schedule some time to discuss further, I'm always happy to help.

Laticia

 Thank you @Laticia Braxton are you based in New Jersey?

[Michelle Garcia]

Quote from @Phillip Austin:

1. 100% you should hire a PM. Sure, a reliable friend or "superintendent" may be able to do the job and they may be cheaper; however, you want a licensed professional that you don't have to micromanage and also, knows the local laws/regulations in your area for when you a legal issue arises.

2. Agreeing with @Ricardo R., local REI meetups through BiggerPockets can be a great resource. You should also check out your local NARPM (national association of residential property managers) chapter. Any worthy, professional PM will be an active member in their local NARPM chapter.

3. My best advice: DO NOT get sucked in by the cheapest PM company. You get what you pay for! Make sure you ask them how many properties they manage; not how many properties the company manages but how many your dedicated property manager manages. It's not uncommon for larger management companies to give 200-300 properties per property manager. I've been there. It's awful and very difficult for those PMs to keep up with that many property owners, tenants, maintenance issues, etc. They have no clue what's going on at your property because they have too much to handle. 

Feel free to DM me if you need additional advice. Always happy to help!

 Thank you @Phillip Austin I search via the NARPM website and it looks like that don't have a chapter in New Jersey. 

[Michelle Garcia]

Quote from @Peter Tverdov:

Michelle you should absolutely hire a PM. It's not expensive, gives you peace of mind if done right. Essex County is a bear. It is the hardest county to evict a tenant in NJ. We won't touch it as a property management company for that very reason. Search for one on NARPM. That is an association for property management companies and any legit company belongs to it. They are excellent. Wish you luck!

 Thank you! When you say to search for an association I am assuming it must reside in New Jersey? It looks like NARPM does not have a chapter in NJ.

[Vincent Paventa]

Hi Michelle - I work with Mark Adam with RPM Concierge for property management of 3 properties in Bergen and Passaic County. He may be able to help if your location is in North Essex County. Mention my name if you reach out!