But I just started - Property Management

[Travis Hibbard]

How is it going this poorly already?

Ok so here's the backstory.  I went under contract a month ago and began my search (armed with BP advice) on the questions to ask to find a great manager.  I chose the ppty manager route because i'm a newbie (first duplex) and i'm a dad with two young kids looking to baby step into things.  After meeting with three prospective managers I made my choice based on local experience, a great conversation and an understanding of my critical nature of how I like things done.

Flash forward 3 weeks and I close this week, the manager had been sending every other day updates on progress in getting in to take pictures, review lease details, agree on rents and get the advertising going.  I'm excited to find the posting and then discouraged at what I find.  An incomplete posting with no details of what amenities are provided and the only picture was the street view google image of the property.  All of which show up in their other listings.  I'm a huge believer that great pictures and a clean posting can really elevate the caliber of tenant that will show.  Being the critical person that I am I would have every detail dialed in about the listing but believed that a FT manager would have a much better method for making it happen.

I sent them an email that night listing my concerns around what I saw (or lack thereof) and its been over 24 hours and no response.  Am i being a little too anal since this is my first posting?  Should I have just gone at this on my own and given this property the attention I know I can give? 

I'm going to wait another day before I really panic but what would you do?  Fire them right now?  If its already this poor how much worse can I expect?  

Feeling discouraged 

[Nathan Gesner]

It sure sounds lazy. I bring on a lot of new owners and I work hard to over-deliver those first few months and earn their trust. I wouldn't think of using public images for a listing unless there was a very good reason.

Question: you mention they use Google images for other listings. Didn't you check their marketing?

I don't know if I would fire them but I would certainly put them on notice - in writing - that this is unacceptable and if they don't step up their game, you'll step out the door.

You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!