Where do most property managers fail?

[Brad Hasseler]

I have been working in the automotive industry as mechanic for the last 12 years.  I like what I do and I'm good at it, but it's time to get out.  

SO long story short I'm getting my real estate license. I'm going to be an agent, but I'm also moving all the pieces into place to purchase my first small multi family in the third or fourth quarter of this year.  Now while being a real estate agent is the perfect job for some people I think my abilities will be best utilized in property management.  That being said I have decided that I'm going to start a property management company.

Now as the title says where do most PMs fail. I'd like to ask all of you that use PMs where do you feel so many companies fall short and the few accel. After listening to 90% of the BP pod casts everyone has a horror story relating to property management. Please share your experiences with me so that I may stay ahead of the curve and learn from others mistakes.

[Brad Larsen]

Where do MOST managers fail?  Let me count the ways:

1) Licensing and Entity Set Up

2) Establishing Proper Bank Accounts

3) Creating a Phone System 

4) Having no PM education or experience

5) Accounting

6) Marketing - Of themselves and the homes they manage

7) Application handling with screening

8) Lease execution - minimal understanding of how to fill in a lease

9) Tenant laws and regulations

10) Tenant relations

11) Maintenance (I should say that 5 times)

12) Make Ready issues

13) Security Deposit Itemizations (the most expensive failure you can quantify)

14) Failing to seek advice or education 

15) Service Animals

16) Fair Housing

I could go on, but one of the biggest and would considered the "umbrella".....is not providing a quality service to their owners and tenants.  Management is not just renting a home and collecting rent.  There is a lot that goes into it and you better be willing to 100% commit to be even halfway decent in this industry.