Property Management Scene for Out of State Investors

[Kendric Moore]

I am a licensed agent working with investors active in the Pittsburgh markets. I hear a lot of property management horror stories amongst local investors and even worse for OOS investors. Does anyone work with investors out of state who use property management services and how do you recommend they go about vetting these services? Any & all input appreciated!

[Laura Stayton]

I co-own a successful property management company in Delaware and we have many, many out of state investor clients.  Do your homework.  Find established companies and ask some questions.

1.  Are they familiar with the Landlord tenant code (and how it dictates what they're able to do and not do and how to do it)

2. Where did they get the lease they use?  Has a real estate attorney familiar with management in the state approved it?  So many posts on here about getting leases on line and asking people to share leases....makes me cringe.  What's good for one state will probably not be good for another.

3.  How do they screen tenants?  Who approves tenants?  Do they ask what the owners criteria is for credit, income etc.

4.  When do they send late letters?  Do they know how they have to send them and what verbiage needs to be included so if they have to file in court it will hold up?  (In Delaware we have to send all 5 day notices by certificate of mailing)

5.  How do they handle maintenance?  Do they have in house?  Many people think in house maintenance is a good thing.  It can be, but it's also a way for companies to upcharge maintenance costs so be careful.  Who handles emergency calls for maintenance 24 hours in case of leaks and such?  When is owner notified? Lots more to find out here....We have an approved list of vendors that we've cultivated over the years.

6.  Do they know how to file a case in JP Court for eviction?  Have they done it before? You have to have someone who knows how to evict.  Worst thing I hear is owners who have managed themselves and tenant is way behind and no idea what to do.

7. Do they have a website?  Do they have tenant and owner portals where tenants can pay their rent and report maintenance and owners can check?  Do they issue 1099's?  How does the owner get their money each month?

Just a few things to consider!!  A reputable company will have these answers immediately