I think I need to find property management for my property in Portland. Any advice?

Question

Hi folks, so I’ve been the landlord of a property in Portland OR for three years now. Unfortunately It's been a constant stressor due to the anti-landlord culture and laws in the city. I really do try my best to be an awesome landlord, but it’s starting to not feel worth the time and energy.

The house is at a 2% fixed rate so it’s hard to consider selling (at least right now), and getting the tenants out of the house would cost at least $5k per the Portland laws. So I think my best bet to start off with is to find a property management company.

That said, I’m wondering if anyone has tips on property management companies they would recommend, and/or any tips on how to find the best property management. Feel free to also chime in with any other advice in general as well. Any input is appreciated!

Nathan Gesner · Answer

I grew up in Oregon and still have a sister living in Portland. I went to visit her in August and that place is turning into a cesspool. Unbelievable.

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. Try interviewing at least three managers.

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

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, 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, a 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. Consider 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. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest 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!

Keenan B. · Answer

Nathan, really appreciate the thoughtful reply! I'll definitely keep all these points in mind as I do some research on my options.

Andrew Postell · Answer

@Keenan Branch this is a great question but I would suggest treating this like any vendor for your market.  So, whether it's an electrician, plumber, title company, or property manager - let's get this answer from other investors in your market.  Let's try some local real estate meetup groups.  Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too.  Even facebook might have some good local groups for you.  Some of those facebook groups have thousands of members. Post this question in there.  Visit these groups in person when they meet.  Eventbrite too.  But post locally for this.  That’s the best bet.

James Hodgson · Answer

Greenbridge Property Management would be highly recommended. They work with a lot of out of state owners with single family homes. 2%...I thought my 2.5% couldn't be beat. Portland rates don't justify selling right now, however they may not for the next 3-5 years. What I'm saying is selling soon or stick it out for a better return.

Nathan Gesner · Answer

Any update? If it were me, I would sell while the market is still strong. The city is unlikely to get better and appreciation is likely to stagnate or even drop for the near future. Sell for a good price and take the hit, then invest in a market that treats landlords fairly.

Michael Smythe · Answer

@Keenan B.

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Keenan B. · Answer

James, the recommendation is much appreciated. After a quick look, Greenbridge seems like a great option to consider. Have you personally worked with them? Or just know someone who has?

As for selling, I agree. The current plan is to consider selling in a few years but hang onto the house for now (if I can find a good management company to take care of it).

Keenan B. · Answer

Andrew, thanks so much for the reply. Getting recommendations from some in-person or virtual groups seems like a great place to start compiling a list of options.

I think I need to find property management for my property in Portland. Any advice?

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