Do You Know What A Property Management Company Does?

Question

What Does A Property Management Company Do Anyway?

Account Closed · Answer

The way people talk on the this forum, every single property manager in the world is horrible. They can't all be bad. There are people that do a lousy job in every profession.

I do great work for my customers and get complimented on my work all the time.

I could tell you some horror stories about homeowners that I used to work for. I have dumped so many of them over the years because they hire me, then want work done for free, while they are rude and demanding.

PM do a lot of work behind the scenes that you never even know about. Things such as frequent drive-bys of your property, multiple calls to tenants about different issues, bookkeeping (there's a lot of bookkeeping), and so much more. Plus, like stated above, we have to know all the fair housing laws, security deposit laws, etc, to keep your butt out of trouble. Please try appreciating what your PM does for you. We work a lot harder than you think. Don't let a few bad ones ruin it for all of us.

Steve Rozenberg · Answer

@Steve Vaughan

interesting comment, while I can understand and appreciate your thoughts I can tell you that I am both a very active investor that owns both single family as well as apartment complexes over the past 14 years. Its funny because the reason I created my own company was because I could not find a company that I felt comfortable handing my portfolio over to, so I can see where you are coming from.

However I would disagree with your other comments. I think that if you find the right partner that understands the mentality of an investor and what their goal is and make sure those are established in the begininig it can work fine. I manage over 450 homes, and am the highest rated company on google in all of Houston. So I do think you can do it correctly by having the right business model. The problem I see is that most investors do not treat their properties like a business.

They do not have a business plan, they don't have a working business model, there are no policies and procedures in place let alone written down. They have no idea what the Fair Housing Laws, Discrimination, Property Code, Security Deposit and Fair Credit Reporting Laws are either.

To me collecting rent is simple, keeping you from getting sued and losing everything because of ignorance of the law and not knowing what your doing I feel is worth $4 - $5 per day for property management.If that is too much try standing in front of a judge with a fair housing violation and tell them you didn't know that was the law. I know because as an investor I have been there and it is not a fun feeling.

Account Closed · Answer

Michelle, I feel 100% sure you are a wonderful PM and worth more than you get paid.

That said, you're in a profession full of shysters, so don't be surprised of the hordes of angry owners badmouthing PMs.  99% of the PMs out there deserve it.

It's like being the one, great, trustworthy used car salesman and being angry that used car salesmen have such a bad rap - because you're not that way.

You won't be able to change people's opinion of the profession, because you happen to be in a profession that is rife with rip-off artists.  It's not your fault.  I'm just saying, don't be surprised or take it personally.

James DeRoest · Answer

Umm, good question. In my experience:

Charge for things that were never done. Loving that insulation i never found in the loft.

Charge for things that didn't need doing.

Put in tenants without a deposit or first month because the PM is "dying from cancer and took his eye off the ball".

Have the place wrecked several times because the PM is "dying from cancer and took his eye off the ball". "Oh and btw, we need $500 to get it cleaned again to turn around".

Steal my rents - hey I don't care if you're a Christian, where are the missing rents? Apparently you don't fear God that much.

Bounce rent checks on me "sorry, we were changing accounts".

Completely ignore my properties as they are just urban housing as everyone justs want the condo business on the beach and wear flip flops and dresses all day long, rather than rent a duplex properly, "what's that Mr Latest Applicant with an appalling credit history and evictions, we have the perfect house for you". "Drop rent off when you feel like it".

Oh yeah - to get a county lein on the property because they didn't do anything when asked and said "yeah, no problems, we'll sort it", as the yard was doing an impression of a jungle.

Steve Vaughan · Answer

In my area, not much but over-charge and provide me with a stream of motivated sellers. Landlords that have thrown their hands up with crappy 'management'.  Cute question, coming from a PM.  Their business model is in conflict with the owner, so having a PM of quality is of the essence.  Like most in RE, 80%+ of them suck.  A business model that conflicts with the owner so much (i.e. benefits from late pays, turnovers. repair problems and damage left over) had better be freaking good at the other stuff, right?  So @Steve Rozenbergwhich one are you?  Are you one of the few or just a mediocre over-charger trolling for business and feeding mine?

Steve M. · Answer

Relatively open ended question ...

Ideally ~ A property manager should act as an extension of the investor while keeping the best interests of the owner in mind.

Reality ~ The few I have worked with over the years have only had their OWN best interests in mind.

I entirely control my own properties now and stick to the strict guideline of, that if its too far away to manage, its too far away for me to own :)

That's not to say my opinion won't change, I just haven't met a Property Manager who has actually "walked the talk" :)  Most spit a big game, but that's about it!

Josh Bakhshi · Answer

Everything Aaron Said. They are speed to act as the landlord. If you live close by and have the time, then you shouldn't need one

Steve Vaughan · Answer

Thanks for replying so quickly @Steve Rozenberg ! Sounds like you may be that rare thoroughbred.  Good for you and thank you for your service!  I would be happy turning over my management duties to a quality  provider.  Here I am the one asked to manage property by agency designated brokers and property owners. I respectfully declined.  Hard, thankless work. I also wouldn't own my book of business, the agency would.   I have great respect for PM when done properly.  Quality PM doesn't exist here, as reflected in my post.  Had to try and vet ya, make sure you're legit. Sounds like you very much are. Thanks again!

Aaron T. · Answer

management companies are supposed to OR expected to maintain the property/investment for the owner.

-Communicate with the owners about expectations/wants/needs-keep quality tenants-minimize vacancies-manage repairs (unexpected to long term)-collect rents-issue any fees and maintain books-evictions -and keep oversight of the condition of the property conforming with the owners standards

Ricardo S. · Answer

Umm... They manage your property?

Do You Know What A Property Management Company Does?

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