New to Real Estate · Toronto, Canada · Member since 2019 · 22 posts · 5 votes
Hi everyone,
I'm researching property management companies for a search fund and I wanted to get opinions from real estate investors.
1) How different are property management services in "tenant-friendly" states as opposed to "landlord friendly" states? Do they generally charge differently or are the fees higher?
2) How are the services and fees for single-family rentals compared to multifamilies? Are there significant differences or are they pretty much the same?
3) Do property management companies charge differently based on location or are the rates dependant on each company?
4) What makes a "good" location to start a PM company? What factors should I be looking at?
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
In OR only, AM NOT A PM and just a broker, but:
1) How different are property management services in "tenant-friendly" states as opposed to "landlord friendly" states? Do they generally charge differently or are the fees higher?
Think services are the same. However, in places like OR, they need to know the law to the letter and keep current. As your agent, they cannot make ONE screw-up if they go to court or get a letter from a tenant atty.
2) How are the services and fees for single-family rentals compared to multifamilies? Are there significant differences or are they pretty much the same?
Oregon - Figure 12%+/- for SFR management. On M/F, anywhere from 8% to 4% of gross income. If it's a LIH property add 5% due to compliance paperwork.
3) Do property management companies charge differently based on location or are the rates dependent on each company?
If it's a SFR 300 miles from their office (if they take it on) then there may be higher charges which should be obvious, but in general, if they take you on, there shouldn't be much of a diff.
4) What makes a "good" location to start a PM company? What factors should I be looking at?
I think places where rent is stalling out or lots of laws. I've told owners in a place like OR, unless you know the rules real well, you're rolling the dice. I'd also look at how I select clients (I know up front the temptation is to take anyone on). However, if you can choose you want someone involved so you can answer the main question of "What are the 3 things we are going to do to increase NOI" which may require them investing. The worst clients are kids whose only involvement is how big the check is each month.