Omaha Property Management Companies - Advice?

[Caroline Kennedy]

My husband and I live in the Denver area but have a long term rental in Omaha. We bought it in 2023 and are on our second property management company in the 2.5 years we've owned it. Both PMCs have been horrible. Their monthly rate is reasonable, but they charge incredibly high rates for any maintenance issues, repairs, tenant turnover, etc. Examples: $30 fuel surcharges for every visit, receipts from 3-4 different hardware stores when all items could have come from 1, 6+ hours of labor charged on repairs that should take less than 2, going with third party vendors that are over an hour away from the property that charge for drive time, etc. We feel that they see our property and all maintenance issues as a way to make them as much money as possible rather than choosing vendors with reasonable prices and there is no way for us to verify how much time their maintenance team is actually taking to do the work. They pay themselves first before we get paid, so there is no way for us to not pay for items we don't agree with. We know we are a 'small fish' since we only have 1 property with them, but our experience with PMCs and long term rentals in general have been horrible. We know selling would lose us money since we've only owned it for 2 years so we are trying to hang on, but when we are losing money every month due to the PMCs and their outrageous charges, it is making it hard.

Are there any honorable PMCs in the Omaha area that actually try to protect owner margins? Have others experienced this 'charge owners for as much as possible' culture with property managers in the area too?

We've considered self managing and trying to find a reliable handyman who can handle much of the ad hoc stuff that comes up but we've even had a hard time finding anyone who checks that box too (and it wouldn't necessarily help with serving notices / showing the place when vacant / etc). Does anyone have any recommendations on possible routes that have worked for them?

[Michael Smythe]

@Caroline Kennedy wondering how you're screening them?

You can DM us for a one-on-one discussion if you think it will help:)

Otherwise, here's our copy & paste advice:

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We’re a Property Management Company (PMC) in Metro Detroit ONLY, with 25+ years of experience, and we’ve seen owners make the same mistakes, over & over again when looking to hire a PMC – which drives us nuts!.

In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.

So, owners mistakenly think price is the only differentiator – and look for a PMC like they’d shop for groceries☹

We encourage you to learn from the mistakes of others by reading posts here on BiggerPockets from owners that picked a PMC solely by price and regretted it.

We recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.

Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.

Even if someone gives you a referral, do NOT make the mistake of assuming that just because a PMC met their expectations, they’ll meet your expectations. We all have our own expectations and what works for someone else, may not work for you.

If you’re new to all of this, it's often a case of not doing enough research, as you don't know what you don't know!

So, ask more questions!

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!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

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😊

Here’s some articles we’ve contributed to BiggerPockets about screening a PMC BETTER than you would a tenant!

20 Questions to Ask When Vetting a Property Management Company: Processes

13 Questions to Ask to a PMC: Communication and Documentation

24 Questions to Ask When Evaluating a Property Management Contract