Balancing property management contract/payment?

[Ken Primrose]

Any advice on balancing property management fees with their responsibilities?

For instance. They put a tenant in a property (I pay 65%of first months lease), tenant pulls apart all the appliances looking for copper or parts to sell (I pay $1500 for new appliances), they evict tenant and I pay minimal fee while it’s empty until rented, they rent to new tenant (I pay 65% of new tenants first months lease and rekeying fee), etc.

- over last 2 months property manager has made about $750 extra payment while I have lost about $2000 unexpected losses and it’s all a result of the property managers decisions.

I’m 7 months into real estate investing, and have 12 units. However, I’m finding in each event the property manager gets paid regardless and I’m often stuck paying for their decisions. I realize stuff happens but I’m wondering if anyone has any experience with balancing the financial payment with the level of responsibility?

[Maritza Wellington]

When choosing a property management company a few quick tips:

1. They don't get paid if you don't get paid.

2. A leasing guarantee that if the tenant does not stay a minimum time, you won't have to pay a 2nd leasing fee.

3. Owner asset preservation programs such as an eviction protection program or resident liability insurance program.

These are just a few points to consider. Ultimately, your property manager is supposed to be on your side.  Your PM is in a trusted position, so if you can't trust them to have your best interest first in mind then they may not be one for you.

Hope this is helpful.