What Do You Want from Your Property Managers

Question

Hello again BP family,

I have finally found a need in business that I believe I can fill.  Property Management!  Based on what I hear from landlords, tenants, and even from my personal experiences with 90% of property managers I can safely say that there is a lot to be desired.  I am in the process of ticking the boxes to open my own property management company because I don't feel that they protect people's investment as well as they should, or could,

So I ask you what is it you look for in a property manager and what actions taken by the company would make you want to do business with only them in that area?  This information could potentially help me to become the best property management company in the country.

Thanks for your time!

Travoris Love

Steve Dye · Answer

@Travoris Love - been with a property manager for six months now.  Running a business in a different industry I had lots of hope for what a PM would do but also respect for what they can afford to do for just 10% of rent.

- some thoughts:

A) Have processes: This is how we handle filling vacancies

B) This is how we handle deposits

C) We do periodic "inspections" - we check the smoke alarm or air filter every three months to see inside. Just to make sure stuff is good.

D) Don't over promise - figure out what you can do for x% and don't be afraid to explain up front how all of the repair and repair management thing go.

E). If you have a unit or two of your own - I would appreciate knowing that you understand it from the investor side.

F) Figure out a way to make money in complementary ways. $120-$70 a unit a month takes a lot of units to become a full time job. (Connect buyers and sellers without an agent fee and get 1% of the deal maybe, Run a lawn service for your properties and others as well)

In a vacation areas the PM numbers seem way better.  The Fort Walton Beach Area is great!  I would think a vacation home rental business would be great.  Seems like often people that live and work in vacation areas live on vacation time too. :)

- Give a crap and want to help.  My secret to success at life.  Good luck.

William Morrison · Answer

@Travoris Love as a property owner that uses Property Managers I like what @David Panzera had to say.  At one time I found that during interviews with potential property managers I would find myself telling them what I expected and many were very good at rewording what I had said as a reply.That didn't work so well, it wasn't who they were so much as trying to be everything they thought I wanted in words.Now I try to let them tell me what they think their property owner would think is important.  I have about 10 things I want to hear.  I either hear it or I don't, but I'm not coaching them.  8 of 10 or so is not bad because not everyone will clearly describe things as they are in my mind. Grin.  But they should have it down pretty well and then references.That said read the threads and see if you can see potential ways to avoid the issues and how you would respond if not.  Yes I know not all of them are the PM.   I includ tenant placement in the PM scope.Bad Tenants, late payments, pricing repairs, communication, what's on your list, how do you respond or avoid issues.  Be ready to explain it and do it in a timely manor.

Travoris Love · Answer

@David Panzera thanks for the information. I am glad to receive any help offered as I rarely see it. Congratulations on having a long successful business and I wish you the best!

David Panzera · Answer

Hey, @Travoris Love, here's a post from BP that you might be interested in reading: https://www.biggerpockets.com/renewsblog/2015/12/02/property-manager-tasks/ and there are tons of others if you just search "property management" in the search box and click on the "BP Blog" link. I own a property management company and read a lot here on the site about how others feel about PM and there's a lot of good information here. So you know, since this is a site for investors, there are a lot of articles that argue AGAINST hiring property management, but I get a lot out of reading them because it helps me figure out what I can do better in my business. We must be doing something right because we've been doing this for 20 years and survived crazy markets! :) I will tell you that it is work that is not for the faint of heart. It's hard, and if you're going to do it and do it well, you need to sign on for the hard work. Best of luck to you!