Property Management - Starting a PM firm

[Kevin Nichols]

There are about 10 PM firms in my town. I've dealt with a few and they seem to be really "old school," as far as their functioning. 

Examples:  

• websites are horrific

• one central email address...even with multiple employees

• use of local telcom domain for email...not even tied to their PM website domain

Has anybody started their own PM firm?  If so, thoughts on your processes and start up?  

As a landlord, what would you "love," to see from your PM?  (I have 9 rental properties and self manage)

[David Woz]

As someone who is in the market for a property manager myself... Here is what I look at:

1. Website:
   1. How many listings?   Does the amount of listing match how many doors they claim to have?   If they claim 1000 doors and have 3 properties listed, something is wrong.   
   2. Can you tell how long they have been listed?   
   3. Professional photos or someone go in with an iPhone?  Some of these guys are posting these horrific blurry photos that look like there should be a yeti in the background.  
   4. Is Enough info listed that if I was looking, would I want to see this or not? Does it list the basics, square feet, bedrooms/bathrooms/ highlighting the quality schools in the area?  You would be surprised how many miss the basics.
   5. Is it clear on what to do if you are interested?  Call- Email.   I can't tell you how many have NOTHING.
   6. I check the major sites like Zillow and Trulia to make sure they are properly populated there.  Do they have contact info listed in Zillow and Trulia.. many have listings, and just someone's name and no way to contact them.   
2. Front office
   1. I call in as though I was inquiring about a place to rent.   Is it a phone tree?  Do I get a real person?   One PM I was researching yesterday had a broken phone tree when people call in about leasing... when you pressed a button to hear about available rentals, it just started you back at the beginning.  .. I later told him and he told me "most people email" and didn't seem too concerned over it.   SMH. I moved on to another company when that happened.
   2. Does someone actually answer the phone?   This is a major concern and one reason why I'm actually looking for a new PM.  Even when trying to send them new business, nobody is available.   I have a very busy job (that actually pays the bills) that doesn't allow me to take calls... SO when I have time to talk, I need to speak to someone then, not 4 hours later when they get around to calling me back.  
   3. How do they answer the phone.   Some just answer the phone "hello" as it appears things are forwarded to their cell or something.    Can that person who answered arrange a showing and intelligently talk about the property I'm asking about?
3. Fees:
   1. A lot of people focus on the fees that a PM charges them.. That is obviously important... You also need to find out what an applicant gets charged in fees to apply.   Some of these people stack the charges for potential renters and their "fees" just to apply can get into the 300-400 range... and you as an owner will never see that... and then sit around scratching your head why your property is sitting empty and nobody is applying.  
4. Do they own properties
   1. A lot of PM's will try to relate to you and talk about their rentals.  You say you own 9..That would probably scare me away..   I get it, you want to relate and understand what an owner deals with, but In the smaller firms, Im trying to stay away from PM's that also manage their personal properties.   If my property and theirs are both vacant at the same time, I have a hard time believing renters aren't "nugged" towards the owner's property first.   I KNOW of one PM that was waving all the application fees for certain properties.. turns out those properties were his personal properties.  The people paying for his service didn't get the same fees waived.  

Not really a list of what I "Love" to see, but more of a list of deal killers for me that so many seem to miss.