All Forum Posts by: Michael Smythe

Class A markets offer great appreciation, but rarely cashflow as LTR for first 3-5 years.

That's why STRs have caused Class A investing to explode - they allow investors to cashflow immediately.

Like anything though, some STR markets are getting saturated.

@Vikram Singh

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😊

Just follow the lines on the IRS Schedule E, unless you need more granular info for tracking ROI, etc.

@Michelle Hagewood

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

One benefit of LLCs that is often overlooked is that they make it difficult for owners to be identified by the general public, but only if you hire a registered agent.

Yes, the owner can still be found. It just makes it harder for tenants and others to do without a fair amount of effort.

@Marc Possoff so you want your tax dollars, which fund S8 programs, to allow S8 tenants to live in the best properties?

Contact @James Wise

@Danny Scott contact us for a referral.

Worse-case the new PMC can do their best to sign new leases with the tenants. They can't force the tenants to do so, if the tenants produce a valid existing lease - which will also solve your problem.

@Velasquez Lopez Juan Horacio we've got many out-of-country property owners we manage for.

Have not encountered one yet that has been able to DIY manage from abroad. Those that have tried, we've had to fix the messes they've made.