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User Stats

215
Posts
120
Votes
Mat Lewczenko
  • Investor
  • Lenexa, KS
120
Votes |
215
Posts

Property Managers - Why do they always Overpromise and Underdeliver?

Mat Lewczenko
  • Investor
  • Lenexa, KS
Posted

I hear this ALOT...
"I had a great PM company, paid them $X but they are gone, had to fire them. They were great in the beginning and then..."

What makes them great at the beginning?
What are the biggest let downs?

I ask because my partner and I are putting together a business plan to start managing other investor's properties as well.

What do you all think is the best Value Proposition that we could offer that the current management pool is lacking in.

Very interested to hear everyone's perspective.

User Stats

13
Posts
8
Votes
Jeremy Colonna
  • Residential Real Estate Broker
  • Long Beach, CA
8
Votes |
13
Posts
Jeremy Colonna
  • Residential Real Estate Broker
  • Long Beach, CA
Replied
Originally posted by Bryan Hancock:
The property management business is very tough. You have to deal with all of the crap that investors don't want to deal with, owners angry about stuff breaking, tenants paying late, evictions, placing tenants, etc. That is a lot of crap to put up with for 7-10% of gross rents.

Having said that...I have had almost universally poor experiences with property managers. They just don't care for your property like you would and they are really more concerned about THEIR business instead of yours.

I have had the same experiences. Having said that, I would rather gouge out my own eyes than take that soul crushing job. Tenants lie more easily than they tell the truth. My family has a hundred or so doors, and around the 6th of the month, we have dying parents, sick children and lost jobs like clockwork. How many people can have more than three or four parents?

The only advice I would have about property managers is to get them young, before the nature of the job has had time to rob them of their integrity! :lol:

User Stats

215
Posts
120
Votes
Mat Lewczenko
  • Investor
  • Lenexa, KS
120
Votes |
215
Posts
Mat Lewczenko
  • Investor
  • Lenexa, KS
Replied
Originally posted by Jeremy Colonna:

I have had the same experiences. Having said that, I would rather gouge out my own eyes than take that soul crushing job. Tenants lie more easily than they tell the truth. My family has a hundred or so doors, and around the 6th of the month, we have dying parents, sick children and lost jobs like clockwork. How many people can have more than three or four parents.

Jeremy, that's hilarious, thanks for the levity. :D

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User Stats

49
Posts
15
Votes
Justin Herrema
  • Real Estate Investor
  • grand rapids, MI
15
Votes |
49
Posts
Justin Herrema
  • Real Estate Investor
  • grand rapids, MI
Replied

@ Bryan, Yeah and it was probably a relative to property management co....I found out the last guy I was using had all kinds of side deals (kick backs) going with contractors he used.

User Stats

13
Posts
8
Votes
Jeremy Colonna
  • Residential Real Estate Broker
  • Long Beach, CA
8
Votes |
13
Posts
Jeremy Colonna
  • Residential Real Estate Broker
  • Long Beach, CA
Replied

Mat,

It was funny, but my PM is having his 32nd birthday on Thursday! Kernel of truth....