All Forum Posts by: Elizabeth Aguilera

Yeah as @Joe Norman mentioned above, Property Management is an unlicensed activity in Maryland. Id actually like to see that change...and both Joe and I are both heavily involved in lobbying in Maryland. 

If the person was a licensed real estate agent, there could be recourse against them. But any random dude off the street can call themselves a property manager in Maryland.

I self manage my properties in other parts of Maryland. If I did own properties in Baltimore, without question I would hire a reputable property manager. Baltimore has a lot of landmines on landlord/tenant issues.   It's a place that requires specialized knowledge, skills and processes. Dont just hire even a random agent who says they do PM. Got to be someone who knows what youre doing.

Looks like you reached out to Joe for PM. Youd be in good hands with him.

Just because someone is a property manager doesn't mean they are a good one. You must do your research to verify they are competent in the field. The answer above from Joe indicates he would be a good place to start.

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Try interviewing at least three managers.

1. Ask how many units they manage and how much experience they have. Feel free to inquire about their staff qualifications if it's a larger organization.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest possible market? Are their listings detailed with good-quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Sorry to hear you are dealing with this. Maryland doesn't regulate PMs (which is a whole other story), however if the PM does have a real estate sales license (i.e., they're a Realtor) then they can be subject to discipline by the Maryland Real Estate Commission, and you can be compensated from the MREC Guarantee Fund. I don't think we're allowed to post links but if you Google "maryland real estate commission guarantee fund" then one of your first links should be to "File a Complaint". I suggest you do this regardless of whether the PM is licensed or not.

Pro Tip: Even in states where licenses are not required for a PM, it's always a good idea to hire one who has voluntarily obtained one. This gives the owner client peace of mind as well as some protection.

Non-humble self promotion: I own and operate Blue Door Residential Property Management (and am fully licensed) and would be happy to talk about your needs if you want to shoot me a PM.

Bank statement loan does appear to have a shot, you may want to look at that option.

@Elizabeth Aguilera, I don't do residential loans in Michigan currently. I'm reaching out to a mortgage broker friend who works in Michigan. I'll let you know as soon as I have an update. Mortgage brokers are the best way to go as they work with multiple lenders and generally have lower overall fees compared to banks and retail lenders like Rocket Mortgage. 

@Elizabeth Aguilera, There are bank statement loans if you're looking to buy a residence with 10% down depending on your credit score. They do require income so not sure if you're cash flowing your properties or how much cash you're putting in accounts right now with the stipend you mentioned, etc. What state are you looking to purchase in and for what price range?