Looking for advice on property manager

[John Becker]

Hello, I have jumped into investing in single family homes in Northwest Indiana, in Lake county. I now own 11 homes, and have been working with a property manager that I personally do like. I would like to explain my results with the group and get your perspective on what is going on. I have had 11 tenants placed in 2017. 1 went through entire eviction process, 1 left on August 15th, 2017 without paying august rent. My property manager who placed this tenant about 6 months earlier, charged me $2600 to get the property rent ready, and I just got an email today, almost one month after the tenant left, that it is now tenant ready again. So of 11 people placed this year, 5 have been evicted.

I just found out that 3 more of my tenants have been filed on for eviction as they have not yet paid August rents. Another person is being evicted tomorrow. Of my portfolio, only 2 tenants are current on their rent.

The property manager tells me that if they were high credit people, they wouldn't be renting.

I would love people to explain the 50% rule to me, as I am getting almost 50% of what my expected rents should be for these properties. I don't want to transfer my properties away from my current manager, but he does not return my calls, and makes me feel like I am a bother when I express my concerns.

I was so very pumped up to get into investment real estate, but now that I am having huge monthly payments for my taxes, mortgages, and insrurance, yet rarely am I getting rental income, I fear I am on the wrong path.

If there are any property managers or investors that work in Hammond, Gary, Hobart, or Merrillville that could offer me an experienced opinion, I would be grateful. I can't change my Property manager's way of doing business, but I can change who I hire to manager my nest egg.

Thanks

[Ralph R.]

John Becker You didn't mention the quality or caliber of houses you own. If these are war zone or very cheap houses than they will attract poorer caliber tenants. Also it seems to me maybe the PM is not screening very well. I own 9 units and am buying a small mini storage facility. All 3,000 miles away. I have said it before on BP and will say it again. I do not move forward on any property until I have management in place!! I start in new areas by interviewing managers. It's easier to find a good deal than a good PM. We viewed the storage units last week. The offer is contingent on my inspection of the property. I spent a half hr looking at the property and about 2 hrs talking to the perspective manager. The numbers are excellent and the property is in good shape. It's all moot if It can't be managed properly. If I felt uncomfortable with the manager I would back out. I have 2 strategies in place if this manager doesn't work out. Out of state investments are all about the management. Learn to separate emotion and business. If you like your PM take him out for beers. Find another PM if you want to be able to afford to pay for the beers. RR