What do you look for in a property management company?

Question

I am thinking about starting a property management business, and just wanted to get some opinions from the professionals who use them.

What about your current property management company would you change?

What makes a property management company stand out and makes you choose them?

Would a property management company that offers more services such as cleaning, pest control, repair etc. Interest you more over a company that just does property management alone? Or is it the opposite?

And if anyone has any advice at all about starting this business, please leave a comment! Thanks!

Taylor Hudgins · Answer

Congrats on starting a new business Shannon!  I think you're going to really find a great need for it in your area!

Everyone will have different priorities based on what they value most. This is a general list I found that may help as common points investors look for:
https://www.biggerpockets.com/blog/2014-03-12-questions-for-hiring-property-management

From personal experience, the most common pieces we look at first are:

1. How much you charge.

2. How many rentals you currently manage.

3. How many evictions you've handled.

For me to pick a particular property manager, I want to know that you care about my asset.  My future stability is held in this asset.  My retirement income is held in this asset.  A lot of my time and effort has been placed in this asset.  Everyone is different but I would 100% choose someone who shows that they care about my property over a large commercial property management company any day.

I've met a lot of local property managers here in my area through meetups and I feel much more comfortable handing my property over to them (depending on their stats) than a stranger on a website.

The full services package is also a WONDERFUL idea!  I definitely would love to work with a property manager who had that as an extra perk if it can help me save some money down the road.

Cheers to your success!

David Barnett · Answer

@Shannon Vinson What I've noticed is the biggest issue with a large majority of property managers is the communication piece.  Being very communicative and competitive with pricing will make you stand out in the eyes of potential clients.  Not to criticize the good property managers, and from more than a managers I've worked with in the past, the bar is pretty low when it comes to communication.  If you do that effectively, you will surpass at least 50% of your competition.  Good luck!

Chris Coleman · Answer

@Shannon Vinson

Communication!  Communication!  Communication!

@David Barnett is on point.

Rule #1 is “no surprises”, and that only happens with proactive and consistent communication from the PM.  As Rental Property owners, we know things are going to break, tenants are going to have issues, stuff happens, whatever.  But the key is for the PM to communicate about it before it becomes a major issue.  My PM calls me at least once per month, even if just to let me know everything is running smooth.

Also, my PM has a maintenance threshold in which they automatically take care of anything under $400, and then notify me during the monthly statement or update.  I like that. I don’t want to get a “call for approval” and go back and forth over something minor and simple like a $50 plumbing fix, while my tenants are waiting and being inconvenienced.

Shannon Vinson · Answer

@Chris Coleman

Yeah I agree completely. Like i said I absolutely plan to make communication a strong point in my business. With that alone I'll be ahead of most businesses. That's alot of really good information thank you!

Shannon Vinson · Answer

@David Barnett

I absolutely agree! I believe most businesses in general are seriously lacking in that department. And I recognize that and plan to make that a strong point in my business. Thank you for the reply!!

Shannon Vinson · Answer

@Taylor Hudgins

Thank you! I absolutely will! Thanks for the kind words and encouragement!!

Amber Gonion · Answer

@Shannon Vinson Most of the units that we manage were acquired through assisting our investors in the acquisition of the property. Use any experience to your advantage.  I was in property management for several years as a regional manager and worked for some of the bigger names in Minnesota which has helped quite a bit in reassuring clients.  My husband always talks about the fact that he has owned properties since 1999,  and after meeting me seven years ago, he realized he didn’t know what he didn’t know about management.   As he says “My wife would see things that I encountered once in my ownership in 20 years every week with her 800 units”

By offering both acquisitions and management together my husband and I offer a total package for new and established investors.  That is our niche, you will need to find yours.  Everyone has talents that give there business value.

My husband runs the maintenance side also offering rehabs, maintenance, and turns.  It is helpful when he walks through potential properties for sale.  Offering and having our own crew not only lowers clients costs, but also offers additional income.  (One of our maintenance guys is a former home inspector which is another perk).  With out it you end up calling contractors for everything leaving no profit for yourself and higher bills for the clients.

Good luck

Taylor Hudgins · Answer

Great to hear!  You're journey is going to be so kick-ass!  Always feel free to message me if you need anything at all!  Or even just support! :)

Shannon Vinson · Answer

@Taylor Hudgins

Awesome! Again so much information. I will definitely be coming back to this and re reading everything. And I will check out that link as well. Thanks again for taking the time to reply, I really appreciate it! This really means a lot to me. That's all I have for now. I'm going to get started on a business plan right away with all this advice in mind!

Taylor Hudgins · Answer

@Shannon Vinson

Of course!  Always happy to help a fellow real estate entrepreneur!

A good property manager price for a single family probably depends on your experience and what other local property managers are charging.  Most managers that I've met have a consistent charge rate (such as 10% of the monthly rent or a flat fee) which would help with any immediate answers on calls.  As an investor, I want to ensure that I'm still cash flowing from my property so I would still need to make sure that hiring a property manager would fit with my numbers.

Lack of experience is definitely something that can be worked around (it just may take a little longer to plant your seeds without a track record).

1. I'm not sure of Florida's law, but you need a property manager license to manage rentals for other people here in Virginia.  You may totally be fine - make sure to check around.

2.  I've found the most luck by going to local investor networking meetups.  You'll meet tons of other investors who may need exactly what you offer.  You may also find other property managers who can assist with questions you have about starting up your business as well!

3. Build relationships with these folks, add value to them for free (such as sending them lease agreement templates or articles that might help them), and they will begin to trust you.  The more value you add, the more they'll begin to associate you with being the "go-to" property manager in the area for all of their questions and eventually their business.

What do you look for in a property management company?

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