New Property Management company

[Christian Hansen]

Hi BP'ers,

I have been working in Human resources for a while (recruiter) and I have been reading on BP because I have a couple of rental properties (2 SFR, 1 Duplex). For some time now I had been struggling to figure out a new career direction, when it hit me, I want to start a property mgt. company! I was a property manager many years ago for a firm in Boston managing high end condos as well as student apts., so I have some experience in the buz. I love real estate and am aware of al the headaches but yet am still really excited by this proposition, it s been a while since I felt this passionate about working.

I will likely partner with/hire a licenced broker as it is a requirement here in NC.  What I would like to know from the BP community is this - What is it that you want from a property management company that you aren't seeing? What issues do you see with most companies?  Essentially, how can I set myself apart from the others.

In my area the clients I will target will likely have SFR's as well as some multifamily dup/tri/quads. I would of course be open to apartment complexes but I am not betting on that happening right away. More likely investors with a few properties up to 30ish units.

Of course it has to be realistic with respect to the costs, I can't offer White glove service at 5% and no lease-up fees.  With the understanding that you have accepted you will pay somewhere between 6% - 10% in monthly fees plus some additional for leasing, what is it that is typically lacking from your current or past property management companies?

Thank you in advance!

[Mike McKinzie]

While price is an issue, SERVICE is key.  You MUST provide good communication with your investors and your tenants.  Having a website where tenants can pay rent and request repairs, and investors can get up to date status on what is happening with their properties is vitally important.

The fees you charge, the monthly fee, a new lease fee, a lease renewal fee, eviction fees, ANY fee that you charge must be clear and up front.  As an investor, I can't stand seeing 'mystery' fees on my property statements.

Some PMs have started to charge a "Maintenance Management Fee" which I think is total baloney.  If I get a repair bill for $200.00, lets say for unclogging a drain, fixing a toilet and fixing an electrical outlet, one of my PMs is now charging me 10% of that bill, $20.00, for making the call to the handyman.  And if I get a new roof for $5,000.00, they charge me $500.00 for a MMF.  I only have one PM that is doing that (I have nine working for me right now), and it will change or I will change PMs.  Which is a shame, because they are a really good PM in all other aspects (and I have referred over a dozen other investors to them).

So, be honest, be fair and provide quality service and investors will be knocking your door down.