Seeking Advice on Property Management Issues for Out-of-State Real Estate Investment

[Luca Giani]

Hi everyone,

I'm a real estate investor based out of state and I'm currently facing some challenges with my property manager. I would really appreciate any advice or insights from those who have been in a similar situation.

This is our second investment property, and the first one is also managed by the same property manager. The process for the first property was super smooth, which is why we chose to work with them again. However, this time around, things have not been going as well.

Six months ago, I entrusted my property manager with hiring contractors and obtaining the necessary permits to get my property rented. Unfortunately, the process has been much slower than anticipated, and we are still not ready to list the property.

Additionally, the costs have significantly exceeded our initial expectations, and the property manager has not been very responsive or clear about why this is happening. Communication has been a major issue, and I'm finding it difficult to get timely updates or clear answers from them.

Given these challenges, I am losing faith in their ability to manage the property effectively and am seriously considering switching to a new property manager.

Has anyone experienced similar issues? How did you handle it? What steps would you recommend I take to address these problems and ensure my investment is managed properly? Any advice on how to find a more reliable property manager would also be greatly appreciated.

Thank you in advance for your help!

[Dennis McNeely]

You may need another team member - someone to manage your construction. Your property manager's comfort zone apparently doesn't extend to the larger project you'd like them to take on. As much as they'd like to keep all your local property-related business, property management and construction management are two different beasts. Finding someone with that aptitude may resolve the problem.

If you can open the line of communication once again, have a conversation and find out if they're capable of finding a general contractor to wrap things up. If they're unwilling or unable to do so, take that task on yourself.

Assuming you can clear the air, let them continue doing what they've done well for you in the past - property management. If they won't respond so you can have the conversation about finding a GC, it's time to move on, and find someone to replace them as property manager.

Hopefully you'll be able to put a period at the end of the sentence without too much pain - either financially or in the form of further delay.