What Makes A Good Property Manager?

Question

I've recently started my own residential/commercial PM company. As an investor of buy and holds I have horror stories about bad PM companies. So I would 1 characteristic of what you consider a good PM company. We have implemented a lot of online features for convenience for our tenants and landlords. We also implemented several property checks during the duration of the tenancy to ensure the property is being taken care of as agreed.

So I would love to hear ideas both from commercial and residential landlords. Thanks!

So I would love to hear ideas both from commercial and residential landlords.  Thanks!

Steve Vaughan · Answer

Thanks for your interest, Amber.

I think the PM would be more selective of new tenants if their fill fee was spread out over the tenancy.  Nobody seems to do it, hence my toil in the trenches of self-management.  I don't understand the push-back against this issue.  What hard costs are really involved with a fill?  I've heard 'high advertising costs' LOL.  Not in ths day and age.  I would pay more, just over time.

I have criteria, but don't accept the first person that barely qualifies.  For fair housing compliance, are you saying you must?  Scared to not accept the first barely over broken person that walks in and squeaks by?  Check for character? Nitpicks?  Drama kings/queens during the showing?  Let me expand.

After pre-screening potential tenants via e-mail fairly extensively, I schedule a showing or 2, usually about 20 minutes apart, while I'm working on the property anyway.  My applications are stashed somewhere, out of sight.  When they show up late, don't make eye contact, don't shake hands, accept the place without seeing it, are ratty, smell of smoke or alcohol, begin telling me dramatic stories of current landlord troubles, mold and such or some other red flag - guess what?   I explain I have to e-mail them an app.  Silly me - dressed in work clothes with a wrench in hand - I forgot to bring them.

The above rarely happens due to the extensive pre-screening I do, but I have definitely 'forgot to bring' applications before.   If a PM is afraid to offend anyone, accepting applications from everyone that fogs a mirror, they definitely need to spread their fill fee.  I'm not attempting to skirt laws.  I know them and respect them, but to think all criteria is met or not on paper only is reckless.  Cheers!

Steve Vaughan · Answer

Having self-managed my 3 dozen units for a while, I would hire a PM if they did these 2 things:  1) Triage service calls - get to the bottom of the "my stove/ac/sink is broke" calls to see if it isn't something simple before calling the Maytag Man at $100/minute.  I handle most of mine over the phone and it saves me 10s of thousands/yr.

2) Spread out their lease-up/vacancy-fill fees over the tenancy.  Make them stand behind their tenant choice.  If the tenant pays, they get paid.  If not, they don't.  PMs are completely unharmed by a poor tenant choice.

Good discussion @Chris Puckett.  Look forward to others' responses!

Chris Puckett · Answer

Hey Ed, I love this idea.  However it sounds like only something that a really large company could implement and be able to absorb those cost.  Our company is designed to stay small on the residential side.  You are correct about connections.  Thankfully through our experience as a REALTOR ® we have been able to build a great network of connections.

Chris Puckett · Answer

@Steve Vaughan One of the simple ways we sort out a lot of "looky loo's" or even poor credit is self showing access to all properties (if the landlord agrees).  So the potential applicant logs in and pays a minimal fee ($0.99 i think) and gets a code for a one hour showing.  This weeds out a lot of people who dont want to bother with the fee.  Way I look at it is if they cant or dont want to pay $0.99 then they wont pay rent on time or at all.

Also, my back ground checks through RentecDirect.com helps weed out a lot of bad applicants.  Then we handle the income verification once the back ground checks are complete and acceptable.

Honestly race, religion, sexual orientation is completely taken out of the equation this way.  It is all done online without talking to the applicant or meeting them in person.  As a REALTOR ® I am very mindful of Fair Housing.

Steve Vaughan · Answer

Thanks for that, Amber.  I was aware of the background stuff, but the clarification is good.

I understand PMs need to be more careful.  If not having a readily available, in plain sight massive supply of applications to anyone that wanders in is fudging the rules, I guess I'm... fudgy.  What I do though, for the times I remember to bring them, is have my criteria in writing. Everyone reads them before they apply.

Because my request that a PM spread out their fill fee (that was the main point here, right?) will apparently never be met, I will henceforth abstain from PM discussions.  Do as you wish, ya'll.   Cheers!

What Makes A Good Property Manager?

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