Property Management & Their Property Inspection Process

[Chanté Owens]

I was talking to one of my RE friends in California and we were discussing the San Bernadino area...Anyway, during that conversation we began talking about Property Managers, and I told him about BP and how so many posters from around the U.S. pretty much have a large consensus that the vast majority of PM companies are sub par.

He said that he has had numerous clients who've indicated they are ready to sell their properties and will tell him that the property is managed by a PM company. He said he'll go to the properties and the properties (by and large) look neglected and are in ill repair with $1,000's of dollars in deferred maintenance items that are obvious. He'll contact the owner and tell them that he doesn't know what they are paying that PM, but they clearly are not/weren't maintaining the properties.

My questions are: What is the protocol around checking on properties? Are there any industry "best practices" that PM's follow, or is it simply at the PM's discretion?

I know in my last apartment, they checked your apartment six months in, to check fire/smoke detectors and at renewal. I'm assuming that an apartment complex with an onsite property manager is held to a different standard than one where it's a company that manages multiple SFR. That's just my assumption, but I'd like other investors who have PM's to chime in and advise how often they require or would LIKE their PM's to check on their properties.

[Daria B.]

Hi @Chanté Owens

I have both SFR and townhouse (in a condo community so HOA applies) that are managed by PMs I hired.

Both said they inspect 6 months (as this was what I was looking for but was already included in their list of to-do's) and of course at the beginning and end of the lease. During the move out there is an inspection but also one when the tenant moves out.

Now, I've asked about this and have yet to get an answer why I don't see any documentation on when they do this 6 months into the lease. And of course I get busy with something else so I don't follow up or press the point to them.

They told me they do this but I've not seen evidence of it and they document everything.

I suppose that because the move-in and move-out are super thorough that nothing escapes. So, if something were to happen at 6 months, at the move-out it would be caught because the move-in also shows defects.  The move-in defects are taken care of before the tenant proceeds with living in the property. I make sure that the move-in issues are taken care of in the week found.

I think it's what the agreement is between the owner and the PM.