Property Management - Bay Property v. JG v. ANY GOOD RECOMMENDATION?

Question

Hi Everyone - Any owners/landlords in Philadelphia have good (not completely expensive) property management for smaller multi family? I have about had it with JG. While they are friendly, I just learned they have let a rood leak languish since December on one property, and on a second one they have now for three years 'forgotten' it is under warranty for the SECOND time.

Anyone have experience with Bay Property? Good, bad, other?

Any other recommendations? I have two 8 unit buildings and one 3 unit.

Thanks much - Gillian

Anyone have experience with Bay Property?  Good, bad, other?

Any other recommendations?  I have two 8 unit buildings and one 3 unit.

Thanks much - Gillian

Michael Smythe · Answer

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

Kevin M. · Answer

@Gillian Thackray we have seen a ton of roof issues this winter in Philly. Record low temperatures along with extra precipitation have been really hard on the roofing system especially the flat roofs. I'm replacing a 15 yo flat roof on my own investment property right now. It's been rough.This entire winter has been tough on repair/maintenance expenses. Roof issues, snow removal, and strain on heating systems have caused an increase in repair/maintenance expense as a percent of market rent. Dec-Feb we are up about 1.5% against historical averages to 13.5% of market rent. This is across the ~750 units we manage throughout Philadelphia. Please reach out to me if you want to discuss management or run some roof replacement numbers by me. We get a lot of estimates for roofing work through a variety of vendors in Philadelphia so I'm very familiar with market rates.