All Forum Posts by: Michael Smythe

Michael Smythe has started 2 posts and replied 4518 times.

Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.

Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.

Also, 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 gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.

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, they often select the first PMC they call or that calls them back!

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!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

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😊

0 Votes

San Jose, California

@Emre Dura why isn't your current PMC handling these repairs?

1 Vote

Detroit, Michigan

@Gregory Schwartz well said!

Don't see how tenants have any incentive to cooperate with a sale though?
- A new owner may not take care of their issues like their current owner.
- New owner is highly likely to raise their rent.
Help me understand your logic on this please!

We can disagree on the No Showings Until Accepted Offer part. Still believe that:

1) With 3D Tours, floorplans and walk-thru videos (taken & shared by listing agent with buyer agents) there's little need for an investor to physically see a property.
2) Agents should better set expectations with investor buyers, so they understand that with #1 above and a great inspection, there's no need for them to physically see a property.

0 Votes

@Sean Haran a great PMC should be able to provide this service.

Just make sure they are COMPETENT enough to do so!
- What construction/renovation background can they prove or take a great game about?

0 Votes

Columbus, Ohio

@Mann Phan why did you buy TurnKey without some type of warranty?

Who's your PMC? How many bids did they share with you?
-$7200 to replace an HVAC unit is pretty steep! What's included?
---We can get a new furnace & AC unit for less!
---Maybe this is a boiler?

This is why we caution novice investors about buying TurnKey properties. Most are rehabbed with paperclips and duct tape, so everything lasts through the typical 90-day Warranty (if a warranty is even given!):(

Who referred the PMC? Guessing the TurnKey company?
-They are probably marking everything waaaay up and laughing about how much you're agreeing to pay.

4 Votes

Cleveland, Ohio

@Gregory Schwartz don't jump to assumptions!

Tenants have zero incentive to cooperate with a sales showing. So, many have to be pushed into allowing them and then have "memory problems" or "forget" to tell the other occupants.

This is the NUMBER ONE REASON for no showings until accepted offer. Then the PMC can accompany the buyer/inspector/appraiser to view the property - as long as the owner is somehow compensating them for their time.

1 Vote

@Leo Gregoire during the COVID Eviction Moratorium, many tenants got greed and were asking for astronomical amounts!

Their "asking amounts" have improved, but are still above pre-COVID times, when 1/2 month of rent seemed to usually work.

1 Vote

Worcester, Massachusetts

@Don White