Out of state investing

[Henry Hsieh]

I am currently Investing around the Phoenix area from out of state, it looks like you need someone in Arizona on paper to manage your properties.  Besides getting a property management company around the area to manage that piece and your property, what are some of the alternative ways that you've done that have proven to be helpful?

I don't see 1 or 2 properties through the property management company a problem, but I do see it down the line if I continue to buy in the region where management fees from these property management company is now a fortune.  What are some ways to navigate around it?  Thanks.

[Dick Rosen]

Quote from @Wade Wisner:

The difficulty is in finding the "quality" property manager - the one who represent you the owner not the tenants. Are these SF rentals in Phoenix? Some other possibilities to a property manager could be a money partner of say a realtor, or other who are in the area and could manage the properties for you both. I have this situation with a small commercial property in northern CA and my realtor partner manages it for us. Of course, we have a NNN lease that places most of the repair/maintenance responsibilities on the tenant. You can do this with residential tenants as well with a lease clause that has them responsible for these same items up to a limit of $150 - $300 per item. At least then they don't drive you crazy with nonsense issues, probably of their making. If you have a good plumber, electrician and appliance guy in the area you can handle most reparirs through them.

If you must hire a property manager, I would get lots of referrals and check them out very thoroughly.   Just some ideas. 

 Wade, if I may suggest, when looking for a PM check out the NARPM.org website, these are PM's that are true professionals that work for you. And in response to the financial partner, including Realtors, they aren't educated in current and constantly changing legislation that affects you and your rental property. NARPM actually has people at the state capitol as well as in DC fighting for your rights not the tenants rights. It's very difficult to keep up with the changing laws and this is why I'm an avid member of NARPM and I wish every PM was.