Issues with a Property Management Company

[Mary Jay]

Hi guys,

Ive been getting comments in my topics to hire a property management

Ive had a really bad experience with the property management companies that I had. 

In both situations I inherited property management company because I purchased with tenants. 

In first case the tenant moved out and there were gums on the carpet and drawings on the walls. Thats about 5K in damages. The property management company wanted to return back to the tenant half of their security deposit (which was 1K and they wanted to return $500) and I had to tell them it was not fair, I need to keep the full security deposit so we settled on me getting the $800 and the tenant getting 200$)

The second property, when the tenants moved out there was dog poop on the carpet and obviously bad smell, and some ripped carpet in a couple of places. Then there was a trash (furniture, matrasses)  that were left outside for one month and I did not know about it. The way I discovered it is I flew to Florida from Arizona and saw it and then met the neighbors who said that the trash was there for one month. The property manager did not tell me anything about the bulk trash, and had I not gone there the city probably would of penalized me for the trash...

Anyway, in both cases it was the biggest property management company in Florida called Watson

Disclaimer: Ive never worked with any of the property managers who are on this forum.

However, I would really like to get some recommendations on some property management companies that are checked by you guys

1) I have a property in Titusville Florida (I have one recommended property management company but open to more suggestions)

2) Palm Coast Florida

3) will be moving out of Arizona soon, so will need to find a property management company in Phoenix

I hate dealing with handymen/contractors so if you have property management companies who deal with those that would be great.

Please guys, give me the names of the companies you have used and liked.

[Nathan Gesner]

Property Managers are like Tenants: there are a lot of bad ones out there so you need to learn what a good one looks like, then screen them until you find a good one.

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!