Would you trust a property manager’s repair opinion before making an offer?

Question

For out-of-state rentals, how much weight do you put on a property manager’s opinion before you make the offer?

I’m not talking about rent estimates. I mean, when they say things like “this one looks pretty clean,” “that area is rough,” or “you’ll probably need more repairs than the pictures show.”

Part of me thinks a good PM should know the local houses better than I do from 900 miles away. The other part of me doesn’t know if I should trust someone who may also want the management contract after closing.

Would you use the PM as an early filter, or would you only trust a contractor/inspection report for repair risk?

Chris Seveney · Answer

Did they provide you with photos? Did you get recommendations from other investors about them?

After interviewing PMs you can tend to slowly start to get a good idea but always recommend getting referrals and photos. Also I do not recommend buying a property solely based on a PM but if you are going to be dropping that much money then I recommend taking the 2 hour flight to go visit the property and the neighborhood to make sure you know what you are signing up for.

Janice Carter · Answer

@Ali Kalaei A good property manager knows the neighborhoods, tenant base, rental demand and common issues better than most out-of-state investors. That said, it is still advisable that you verify major repair concerns through inspections and contractor estimates. If you don't trust the opinion and expertise of a property manager, then you shouldn't be doing business with that individual in the first place.

Adam Bartomeo · Answer

Based on this, why would you trust a contractor? They are only trying to make money from the repairs and will benefit from telling you that it needs more.

A good PM will want to get the property rented as soon as possible and should be letting you know the pit falls before you sign anything. They will also be able to guide on what repairs are valuable to the tenant and which ones will not give you a return. They don't want you coming back to them saying "you told me..." But, you have to find a good PM that is knowledgeable.

Richard F. · Answer

Depends on the PM...all are not created equal! You need to find out about there actual experience. How many units have they managed, and for how long? For themselves, or for multiple Clients? What is their level of involvement with turnovers and renos? In short, you need to determine if they know what they are looking at/reporting on. It takes years of experience to learn of the many surprises that most properties hide.

Would you trust a property manager’s repair opinion before making an offer?

Would you trust a property manager’s repair opinion before making an offer?

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