All Forum Posts by: Drew Sygit

@Kevin Coco-Senyszyn if you're super hign-end, then you should get the listing on the MLS.

Many high-end renters do hire agents to find them a home.

@Jim K. Yeah, get frustrated with the posters that can't see past their own nose!

They share what's worked for their tiny corner of the world - like it's going to work everywhere.

@Joshua Randall Manes find a private money lender to help you with the 20-25% down and get a commercial loan.

@Bruce Yi

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.

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😊

Numbers?

@Patrick Flanagan if you've hired a Property Management Company, you don't need a PM software, just accounting software.

All you need is one Operating Account for income and to pay expenses for mortgage, taxes, insurance, repairs, etc.

You should be able to do all this yourself for now. 

Get in the weekly habit of scanning all your receipts and naming them like this, yyyy-mm-dd <street>_<# addres> (vendor) <reason> $xx.xx

So, for example: 2022-07-16 Main_E_123 (JoePlumber) Snake Drain $125

Then you can also enter in accounting software. If you use Quicken, set up Classes for each property and income & expense type, sources. 

@Alicia Marks Yes, but thought were not allowed to solicit business in our responses?

Also, we don't use the DM, so please email us:)

@Wendy S. Renting by the Room (boarding house) is a real niche business. 

So, yes, the heading of your post should mention Renting by the Room:)

We're not aware of anyone managing properties this way in the Metro Detroit market, but have heard of companies handling them for nearby college towns. 

Also, there's 2-3 online companies now specializing in room rentals, but only in specific cities with housing shortages.

@Wendy S. You'll have to come to grips with the fact that NO ONE will do everything the way you do it.

Somethings a PMC will actually do better, but they won't do the extreme hand-holding of tenants that many DIY landlords do. PMC's also typically take a more pragmatic approach to maintenace.

Here's our standard advice about finding a PMC:

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.

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😊

When's the next one?