Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
Today I have spoken to an attorney(investor) , Realtor (investor) and a few other non-investor realtors who all said the same thing. THE PROPERTY IN ROCHESTER NY SUCKS!!! I'm interested in hearing the experience of current investors from the area or strategies to deal with poor property management.
I previously owned 4 properties in the City of Rochester. All of them 2 units. Without fail every single property management company (one of them was mentioned byMatt Harris) I've hired has had issues with at least one or more of the following issues:
a) Creating repairs and invoices for fictitious repairs.
b) Charging us for repairs done to another property.
c) Not managing the tenants properly in terms of them paying the rent late. i.e. - US- What happened to Mays rent? THEM - Oh, we forgot to tell you that the tenant is having some issues and said they won’t be able to pay till June.
d) Not communicating the cost of repairs and charging us for them unexpectedly. i.e. - the stove broke we had to replace it.
I've learned that property managers need managing. Left unattended the tendency is for them to use your rent rolls as a license to print money.
I've gone through 3 different property management companies in Rochester and 3 different PM's in Allentown PAand it almost seems like there is a common theme amongst them which is that they know you are an out of town investor and the likelihood of you showing up to inspect your property is very, very low. The further away the better it seems.
I've taken some precautions lately like asking for a phone call prior to making any repair more than $100. Asking for before and after photos of repair work that needs to be done. Closely watching the expense column for charges (hidden, mistaken and otherwise)
You also have to be very careful about the contracts they use. Some will charge you a PM fee even if you have a vacancy. Where is the logic in that? They say it’s because they still have to manage the property. Whatever. There are other conditions in their contracts (like charging you a tenant placement fee even if you find a tenant on your own) that are not in your best interest so review the contracts carefully before you sign.
When using PM's I take some precautions like asking for a phone call prior to making any repair more that $100. Asking for before and after photos of repair work that needs to be done. Closely watching the expense column for charges (hidden, mistaken and otherwise)
Farmingdale!!!! Neighbors!! Peter tell me about it. Now are we talking 4 in the last 10-15 years? or in the last year? what's the biggest challenge besides the strong rental market creating relaxed PM? give me an idea of the area code(s) your in. I was looking at 14611, 09,08.
four in four years. One was good but became bad as the got more business. One should be a mental patient, one was caught lying to me. One is good, honest and constant but doesn't work in all my area codes. I am transferring some stuff into a larger PM right now.
I think when working with PM's you need to be able to keep an eye out for when things start going poorly, and move quickly. I have really learned a lot the last few years and think I have learned how to spot when the PM production is getting poor and bail out quickly.
I got it!! So currently how do you have things set up? My clientele will be month/month cash/lease. How do you transact with the PM's? Do you have the PM collecting the rent or are the tenants doing online bill pay or paying you directly other ways? What kind of reserve do they require? is your current PM using quick books?
I have heard both good and bad I'm here locally I'm a landlord and agent currently I manage my own. But am looking at rochester asset management or lighthouse there's a few others and then alot of poor ones. May possibly continue my own and possibly work with other in that area. Thanks
@Account Closed Ideally I would like to manage in my backyard but the home prices here on Long Island are astronomical. In Rochester i think i can squeeze $115 - $140 per door with a mortgage but was shocked to hear about the property management issues. Are you looking to get into property management yourself? I mean for other investors? If you can PM me some recommendations I'd appreciate it.
I previously owned 4 properties in the City of Rochester. All of them 2 units. Without fail every single property management company (one of them was mentioned byMatt Harris) I've hired has had issues with at least one or more of the following issues:
a) Creating repairs and invoices for fictitious repairs.
b) Charging us for repairs done to another property.
c) Not managing the tenants properly in terms of them paying the rent late. i.e. - US- What happened to Mays rent? THEM - Oh, we forgot to tell you that the tenant is having some issues and said they won’t be able to pay till June.
d) Not communicating the cost of repairs and charging us for them unexpectedly. i.e. - the stove broke we had to replace it.
I've learned that property managers need managing. Left unattended the tendency is for them to use your rent rolls as a license to print money.
I've gone through 3 different property management companies in Rochester and 3 different PM's in Allentown PAand it almost seems like there is a common theme amongst them which is that they know you are an out of town investor and the likelihood of you showing up to inspect your property is very, very low. The further away the better it seems.
I've taken some precautions lately like asking for a phone call prior to making any repair more than $100. Asking for before and after photos of repair work that needs to be done. Closely watching the expense column for charges (hidden, mistaken and otherwise)
You also have to be very careful about the contracts they use. Some will charge you a PM fee even if you have a vacancy. Where is the logic in that? They say it’s because they still have to manage the property. Whatever. There are other conditions in their contracts (like charging you a tenant placement fee even if you find a tenant on your own) that are not in your best interest so review the contracts carefully before you sign.
When using PM's I take some precautions like asking for a phone call prior to making any repair more that $100. Asking for before and after photos of repair work that needs to be done. Closely watching the expense column for charges (hidden, mistaken and otherwise)
@Michael G. THIS is what I'm talking about. Cold Hard Facts!!!!! Thank you for sharing your experiences. Seems like managing the manager(even Micro Managing) is in order. I'm 5 hours away so I'd prefer to fly there instead of driving. I was thinking of setting up a network with other out of towners and we take turns going out there and check on each others properties at a set time either monthly quarterly or semi-annually. This will get some unbiased eyes on the ground. Sorry to hear about the fraudulence they've put you through man. But I like your rebound approach of restructuring your dealings. Thanks for sharing. If your willing to share who your currently using and don't want to broadcast PM me.
Thanks again.
@Ben
@Account Closed No worries....I see that your an international investor. Where'd you touchdown in Europe Ha? HA!!! Just kidding, Yea send me what you have I'd appreciate it.
there are both very good and bad PMs in Rochester and many other places. In Rochester you have a lot of out of town in esters that are easy to try and cheat. So unfortunately the market here being a very good rental area has attracted some bad property managers. However there are also some very good honest ones also.
I highly recommend @Rebecca Lebowitz. I don't use her as I manage all of my own properties, but use her as a realtor on the side so have had enough conversations, both professionally and socially, to know how she handles her business (similar to what I would do), she makes good decisions, has great experience, and most of all, she is honest and has a strong work ethic.
Once you narrow your search down to a couple of companies, I would set up a time to stop by their offices and meet the staff. Walking in the front door is a great way to gauge who the company really is and if these are the people you want to go into business with. We all know if you and your property manager aren't going to be on the same page, it's a lose for you, the company, and the tenant.
Here is a list of questions to help you decide who is the best fit for you.
Sorry to say @Martin Grizzanti but they have some of the worst reviews I've seen.......Maybe these were disgruntle tenants and landlords who posted reviews with no basis, but they are all pretty much saying the same things. Thanks for the referral anyway.
Hi guys, i am from New York City and I was just looking at Rochester as an area for long distance investment using property management companies from there. The prices for homes seem cheap and they appear to have high cap rates. Is this a good impression that I have of Rochester?