Managing Your Property Manager

[Andy S.]

Hello BP, 

I just closed on my first small apartment complex (15 units) about 20 mins from where I live. I listen to a lot of podcast by 

@Gino Barbaro who emphasizes a lot about "managing right", which I agree (and as well as many others) that it is an important component of investing in multi-family. 

I wanted some inputs from other apartment owners on how you keep your property managers in check?

How often do you visit the properties?

Do you guys ever send surveys to your tenants to make sure that maintenance issues are addressed in a timely manner by your PM?

Any ideas and or suggestions on how to manage your PM would be greatly appreciated!

Thank you!!

[Nathan Gesner]

@Andy S. I am going to give you my personal perspective, which may or may not work for you.

Finding a good property manager is a lot like finding a good tenant. If you do the research up front, you won't need to baby-sit them the rest of the time.

A good tenant doesn't need to be inspected every three months. They don't need you knocking on the door asking if they have maintenance issues or checking the air filter. A good renter will pay on time, show respect by caring for the home, and they will communicate well because they understand it is your investment.

Likewise, a good property manager doesn't need to be baby-sat. You won't have to ask for a financial report because they will send it every month. You won't have to ask why they spent $300 on a plumbing repair because you will know they are trust-worthy and will treat the investment like it was their own.

I understand it takes time to develop trust but far too many investors feel they have to constantly question every decision the PM makes or check up on every action they take. If you've been with a PM for six months and still feel they require micro-management, that tells me you either hired wrong or you have some personal issues.