Property Managers

[Crystal Chang]

Hello Fellow Investors!

I just closed on a rental property in Austin, Texas about 3 weeks ago, and I have property manager in place already.

My question is:

1) What are some of the main things I should be aware of?

2) What checks and balances should I have in place to prevent unscrupulous managers from taking advantage of me (I am located in Southern California and I have a full-time job as an investment banker).

3) Because my rental is in a hot market, my property manager was able to rent it out in less than 2 days.  I have yet to see the contract but the tenants are paying.  Is it normal for the owner to see the contract between the PM and the tenant?

4) If anyone can provide me with their suggestions, I would highly appreciate it.  I'm more of a hands-on person, but because of my full-time job, I am not allowed to do so.

Thanks everyone in advance for their expertise,

Crystal

[Chad Lopes]

1) What are some of the main things I should be aware of? - responsiveness, I would test them, send them emails/calls, see how quickly they respond. Hidden fees and overcharged rehab costs.

2) What checks and balances should I have in place to prevent unscrupulous managers from taking advantage of me (I am located in Southern California and I have a full-time job as an investment banker). If you have to rehab the property and the price feels high, get another bid.

3) Because my rental is in a hot market, my property manager was able to rent it out in less than 2 days. I have yet to see the contract but the tenants are paying. Is it normal for the owner to see the contract between the PM and the tenant? You can absolutely request the contract. In fact, you really should review it to make sure you are comfortable with the terms.

I know where you are coming from. Given your background in ibanking, you probably think there are norms or rules and regs around PMs. The truth is that the PM world is the wild wild west and you can and should demand to have things done your way on your terms. Don't be afraid to be assertive and demand high quality. I can promise that no one cares about your property as much as you do so ask the tough questions and never assume the PM is looking out for your best interest.