Property Manager styles

Property Manager styles

Member since 2018 · 12 posts · 8 votes

I'm under contract on an out of state property, so I'm looking into property managers in the area. The companies I'm looking into seem to have three different ways of addressing maintenance issues. 

1- Some of the companies employ the entire maintenance staff, from handy men to electricians plumbers and contractors. When an issue comes up, they send down the appropriate member of the staff to take care of it. 

2- Other companies have a sister company that does the work. They take the calls, and then tell the sister company which professional to send down to the property.

3- A couple of companies have relationships with various professionals, but no staff or sister company. When a job needs to be done they presumably pull out their roladex and go down the list until someone is available. When a bigger job comes up these companies have the flexibility to have a number of contractors come out to provide estimates, and while this allows them to get a better rate they also take a finders fee.

I can crunch the basic numbers myself. But I'm wondering if the members of the forum (this is my first property) can shed some light on what I should expect from these different styles? Should I expect more delays when the company has to work around the availability of their sister company? Should I expect shoddy work if they are just calling around to find an available electrician? And should I expect the companies in the first category to send out plumbers when a handyman would suffice in order to justify having the more expensive professional on staff? If you have answers to any of these questions, or can share any other pro's or con's of these models that would be very helpful.

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  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    7y

    Ideally you would have your own maintenance crew to address repairs to avoid the PM company 15% markup. Let the PM company let you know of a repair, then send your own person over there. Enlist a handyman for minor things like painting, changing light fixtures, unclogging sinks, replacing faucets, rodding, drywall, etc. Have a licensed electrician and plumber for things requiring a permit.

  • Member since 2018 · 12 posts · 8 votes
    7y

    Ideally yes. But being my first investment property I have no experience. I'd like to at least start out having a PM company take care of the work. If I start seeing that I have the time to research look into good handymen in the area I'd certainly be willing to take that on. 

    Also, just to be clear, they only add 15% to larger jobs. They take no "finders fee" on typical maintenance work. So, yes, it's certainly something to consider when a big job needs to get done. 

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