What to expect from Property Manager

Question

I'm relatively new to multi-family investing over the past year or two, but realize there's still a ton I don't know. I think i've got a very solid PM managing a 5 unit- they're responsive (which I value highly) not only to me, but equally important to my residents.

A couple quick questions:

1) do you have your PM's manage your monthly utility payments (water, gas, electric etc)?

2) Anyone have any suggestions for good books or podcasts on managing a property manager? There are tons of books on self managing and becoming a property manager, but not much on being an owner managing a property manager.

Thanks! - Tim

Michael Smythe · Answer

@Tim W. we handle utilities for our clients.

We charge $5 to pay each bill as we scan and publish to Owner Portal.We do NOT put the utility in our name, we are just listed, "In Care Of" on the accounts.

Not aware of anything that you can read to learn about managing your PMC.

You may want to learn more about self-managing and then ask your PMC what their specific procedure is to handle different issues. This way, you can determine if they are managing how you would like it done.

Patrick O'Sullivan · Answer

Hi @Tim W.,

It seems like you’re off to a great start, especially with a responsive property manager. That alone can make a big difference.

For utilities, it really depends on your preferences and how hands-off you want to be. Some owners like to keep control so they can use autopay or earn rewards on a credit card. Others are happy to let the property manager handle it for simplicity, as long as there's a reliable system in place for tracking expenses and reimbursements. If your PM is already doing a great job with communication and reporting, it could be worth asking if they can take that on.

As for resources, you're right that most books and podcasts focus on self-managing. That said, understanding the basics of property management still helps you set expectations and spot whether your PM is doing things effectively. A couple of general real estate podcasts, like the BiggerPockets Real Estate podcast or the Best Ever Show, will occasionally touch on working with PMs. Also, don’t hesitate to ask your PM directly about their processes. You might even talk to a few other companies just to get a sense of how others operate in your market.

Being proactive and thoughtful is essential for building a strong, long-term relationship with your manager.

Best of luck with your five-unit property. You’re on a good path.

Peter Mckernan · Answer

1. Yes this is very common to have the PM company pay the utility bills when vacant and keep some in their name while billing back to tenants too.

2. Not sure on any books, but the people that have been successful and had success with PM companies is going from owner/op to getting a PM in there to operate the property. If you do not have this experience I will sit down with a few other PM companies and this one to see if they offer a handbook to owners in your area to read over what they are doing compared to what your current one is doing.

Bill B. · Answer

Most utilities are the responsibility of the tenant. Any utilities that are never their responsibility should just be put on autopay. Most utilities have a “landlord option” for utilities that tenants pay when occupied and you pay when unoccupied. It switches in to your name automatically when they move out and in to new tenant’s name when they move in.

I’ve only got a dozen properties but even without any input from my PM I might deal with 1 invoice a year if the tenant gets behind. I give them a week to pay it or I pay it and add a $25 fee. It becomes due in full with next month’s rent or they are subject to late fees. It hasn’t been an issue in 25 years.

Tim W. · Answer

@Ryan Muska thanks Ryan- I'd like to be the same way. I'll have to ask my PM about it.

Lydia Winn · Answer

Hi Tim,I personally don't put utility payments in my name as a property manager, so I don't directly manage that for my owners. Some utility companies require someone to be paying for minimal heat in every residence (so pipes don't burst in the winter) and make it very difficult to remove your name and payment information once you give it to them as a result, which can put, me, as a property manager and agent of the owner, in a difficult position if they, say, put the house up for sale vacant and it sits on the market for months.

As for managing a property manager, I highly recommend this amazing resource from BP itself. While this is questions for hiring a property manager, they go a long way with illuminating what reasonable expectations are on an ongoing basis. https://www.biggerpockets.com/blog/questions-to-ask-a-proper...

Ryan Muska · Answer

1. Yes, I have them manage that stuff.

2. I do not have an option, but my experience is that I really do not want to be hands on at all. I basically let them do everything

Ryan Muska · Answer

Good luck, some property managers show their true colors when you actually have them do stuff haha

What to expect from Property Manager

What to expect from Property Manager

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