Self-managing a property long-distance - any suggestions?

[Vonetta Booker]

I didn't want to, but I am considering self-managing my newly-purchased SFR in Cleveland (I'm located in CT). Don't get me wrong, I feel like a good PM is invaluable and have no issues paying one their 10% to properly manage my property and take away my headaches. However, I have reached out to and interviewed several PMs, and there seems to be a big communication issue - a large number of them are unresponsive, replying w/ pertinent info days after they said they would - if at all. I figure if these issues happen in the mere beginning/inquiry stages, how are they going to effectively screen/place tenants & manage my properties?

Do any of you have long-distance properties that you manage yourself? If so, what resources & tools do you use?  I really wanted to use a PM, but at this point I'm seriously contemplating just letting my RE agent list it, screen the tenants & get a good handyman, plumber, electrician etc. to handle whatever issues come up. 

[Drew Sygit]

@Vonetta Booker

Technology has made it easier than ever to DIY manage rental properties - but, that doesn't mean it should always be done!

In our opinion, many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

As a PMC in Metro Detroit, we receive lots of inquiries from owners about managing their rentals. A high percentage of them are inexperienced and just shopping by price - which is really a waste of time for a good PMC. Their inexperience is going to require "babysitting" them until they learn the business, which takes a lot of time, yet they want the lowest price!

So, if PMC's are not bending over backwards to get back to you, it may be because of that or #5 above.

Hope this insight helps!