All Forum Posts by: Avi Lah

Hi @Avi Lah,  Did you ever find a solid PM?  Am considering investing in the Lancaster market.  Curious what your experience has been.  Would love to chat if you're up for it.

@Avi Lah

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

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!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

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😊

@Avi Lah Did you find a PM ? I am looking for some recommendations.

I am looking to buy my first investment property in central PA and found a real estate agent I like who works with Home365. After reading this forum I'm not so sure. Does anyone have a good alternative in central Pennsylvania, Harrisburg/York area? Searching online, it seems all the property managers have awful reviews. 

@Avi Lah

Actually it is a problem if you’ve spent over 183 days in the US. You might want to check the US tax residency rules again, because once this threshold is crossed, you are US tax resident from your residency start date. After that date, it doesn’t matter where your income originates, your worldwide income received after that date is subject to US tax. Even if you’re not a US tax resident, profits from the US rentals could trigger a return filing requirement depending on the facts.

W-8 ECI would only apply if you made the ECI election. If you give the mgt co a W-8BEN, they’ll withhold a 30% tax on the gross rents before you get anything assuming no ECI election has previously been made. If you give them a W-9, you are telling them under the penalties of perjury that you are US person that will be reporting this income on a US tax return. Generally they will accept what you give them but if they have actual knowledge about your situation that the w-9 does not reflect your status, they can hold the funds until you clear it up and give them the right form.

The W8s and W9s don’t get filed with the IRS, they are held in the records of the mgt co. The IRS has nothing to do with those unless there’s issues later. However signing the wrong one or making inaccurate assertions about your status (even if unintentionally) might not be a great idea.

Sounds like you might need to talk to a US tax professional experienced in international tax and get this sorted out.

I cant help you with a recommendation but we manage over 720 units in the Pittsburgh market. Some helpful tips to look for. What is the companies current vacancy rate? Who will be assigned to my property and can I interview them? What is their experience level? Are the owners of the company involved in the day to day operations and can I rely on them if there is an issue with my current property manager? How long have they been in the business? 

You want to hire slow and fire fast. Dont sign more than a 1 year contract and make sure you talk with at least 3 companies. Property management is a super hard business to run and manage and profit. Dont just look at the fees. Thats the least important. If you want to message me I can send you a PDF with a lot more questions you should ask.