Choosing a PM

[S. Perry]

Finally ready to hire a PM company. Met with one last year briefly when house wasn't quite ready to rent. He thought otherwise and said it was "rent ready" as far as he could tell and if any issues were to arise his in-house maintenance people could easily handle any task.....of course they could to the tune of a 10% up-charge on services. I explained that we were trying to avoid as many additional expenses as we could at start up since we had been sitting on the property for 2 years without any income from it (our company utilizes a portion of the property aside from the home). We took our time with repairs and now are ready to get the process underway. I felt slightly pushed with continued contact from him but that ceased earlier this year.

First PM (met with previously) didn't specifically rub me the wrong way nor did he dazzle me with brilliance. I did like the price he wanted to rent the home for and that may have clouded my judgement. The only concern I had initially was that when I asked about how often inspections were done he said that in his experience it was best to NOT do them so renters didn't get a chance to complain about numerous minor issues.

His company charges a $150 set up fee, entire amount of first months rent and 7% of rent collected going forward. There is of course the 10% up-charge fee for maintenance and he requires free access without approval to issues up to $500. These charges seem to be within normal ranges for my area. I have found 2 negative reviews online concerning their practices. They are not listed on Angie's List nor with the BBB in my area.

Located another company this week via Angie's List (A rating) and with BBB A+ rating. Multiple positive reviews online. I don't put too much stock in good or bad reviews. I have not met yet with this company but did obtain some info from the owner today. Was not able to reach anyone by phone at the office for multiple days in a row (red flag?) but my e-mail inquiry was returned.

They do not charge a set up fee. They charge 1/2 of first months rent or a minimum of $650. 10% a month going forward of rents collected for the first year. If you opt to continue the relationship in the 2nd year the commission drops down to 8%. There is no up-charge for maintenance fees and only a $200 reserve is required (anything above would require approval from owner). Inspections done often (at least quarterly if I remember correctly). They are set up to handle approx. 40 SFH rentals/condos at any one time and don't service any multi-units. They don't represent "investor-only types" and the majority of their rentals were once owner occupied. Seemed more down to earth?

Will be meeting 2nd PM next week. At this point the only thing I can find that would be a turn off would be a low rent number. I know what they say about too good to be true so I am not putting all my eggs in one basket just yet. Any advice?