Is my Property Manager doing a good job.

[Paige Crowe]

I have self managed a single family and a triplex and recently bought a duplex that was being managed by the only property management company in my area. My end goal was to have property management so we thought we would retain them and see how the process went for the first year. They maintain the first months rent plus and additional $150 fee with 8% of the monthly rent. I am wondering if I just have high standards and am unable to let go control as there have been multiple incidents that have happened that make me think I need to take back over managing the property. I am writing this to see what you all think as well!

Bought the property in July with one unit needing a new tenant

- The open unit was dirty after cleaners had been through ($350). They did not move the fridge, oven, and every wall needed scrubbing. (My mom and I spent over 8 hours scrubbing and cleaning)  I talked to the PM and they didn't think it was bad and that it would be on us to pay to have it cleaned again. They said they do not do a deep clean in-between tenants and when I asked how the condition was when the previous tenant moved out they brushed me off. 

-Only 1 screen in the two bedroom unit was intact, the rest were either missing or had big holes. I asked if this is part of their walk through checks to maintain or charge the previous tenant for damage. They said screens are not legally required for us to provide so they haven't checked them. We are paying to have new screens and when asking the other tenants they also needed almost every screen replaced.

-Every wall had 10-20 holes, some small but others were larger from prior tenants hanging things. They did not fix those or touch up paint prior to the next tenant. They said they could and we could pay for their handyman (which I know we would pay for but I thought fixing the unit was standard). My husband and I again did this ourselves over three weekends to get the unit rent ready to our standards. 

- The PM said after looking at the property the bedroom floor needed flooring. I asked for quotes from their handymen but after over a week with no response after asking twice my husband came to do the work. 

- The exterior had a rotting porch with a handrail that had completely fallen off- when I brought this up they said they told the old owner about it and he hadn't wanted to fix it. My husband fixed that as well, and another porch that was rotten we found an outside contractor to redo the entire porch. 

- The exterior also had against the new tenants porch- 6 sandbags, with a winter sled, some random wire and plants growing in the sled with a kids bike leaning against it. The PM had no idea who's that was and I asked if they were just gunna leave it there or take care of it and again it was up to us to take to the dump. 

-We did meet at this time to go over issues and so I could state my frustrations and they said they would improve and to let them know any other frustrations.

- They charge the tenant rent plus a utility fee of $50.00. When the new tenant arrived they took the first months rent plus the additional $50 as part of their payment. I had to email 4 times over two months to have the $50.00 returned to me as it was never supposed to be taken as their payment.  

- When I bought the property they paid the lawn care, plowing and trash. I took that back over and in talking with the mowing company they said the PM always paid late so they were charging a late fee to the PM and therefore the prior owner. 

The PM's charge a higher amount for rent ($1500 + $50 utility fee- 2 bedroom and tenants pay heat, electric and internet)  in our area than I expected and there were showings before I saw how the unit was that the prospective tenants passed on us. After seeing the unit I understand why.  Let me know your thoughts on this property management company. 

[Drew Sygit]

@paige crowe

How long has this PMC been in business?

What online PMC software are they using?

Do they offer an online Owner Portal?

Sounds like they've been around awhile and have their "old-school" way of doing things and may be a bit behind the times with technology and standards.

Overall, they seem to be treating your property like a Class C rental.
- What do you feel the Class is?

This is important because many newer investors try t make their rentals like they would live in them instead of, "Maintaining to the Neighborhood".
- So, a Class C rental, should be maintained to Class C standards, not Class A.
--- You can go up ONE Class (maintain Class B to Class A standards), but not more than that. You may not get that much more rent, but the property may rent faster or atttract slightly better tenants.
--- You can also go down ONE level, but only in high demand areas. Otherwise, you will attract worse than average tenants.

Without knowing your property's Class, we can't really comment if the PMC's approach is justified or not.

What is concerning is their lack of properly addressing & managing your expectations. 

You may want to make a list of your concerns and request an appointment with the company owner or operations manager.
- How they respond to and follow thru on this request will tell you a LOT about their professionalism.