What the best why to get property manager ?

Question

I have a little experience with property management but I did go through a real state office to manage 3 duplexes but there wasn’t a lot of communication between us maybe normal. I have always managed my own but it starting to get bigger than me and my questions is are there just property managers that is all they do and not realtor as well.  What is a normal charge for a property manager if they managed 25 doors.

Communication I would like

1. To know when someone not paying and a plan of action

2. A monthly drive by of property to make sure it look good

3. Filling Vacancy with a date that it will be filled

4. Eviction process that they will take care of it

5. Quarterly walk through of homes

Please add to my list once again I am really wanting to learn more.

Nathan Gesner · Answer

@Carson Plant a good Property Manager will protect your property, protect your income stream, and reduce your headaches. A bad one will ruin your property, eat away at your income stream, and create headaches. How do you find a good one? The same way you find a good tenant: solid screening processes!

I've got a start list below but you can search Google for "how to interview property manager" and find more detailed lists. The key is to really verify what they are telling you. If able, try visiting their office to meet the staff, look at some lease agreements, management agreement, key storage, etc. You can tell pretty quickly if they are professional.

A monthly exterior inspection is manageable but quarterly inspections are unrealistic and unnecessary. I manage over 300 units and interior inspections occur twice a year and we are almost never caught by surprise. If an owner insists on more inspections than that, I charge for it.

Remember: cheaper doesn't mean you'll make more money.

You can start by going to www.narpm.org to 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. Regardless of how you find them, try to interview at least three managers

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, late rent, evictions, turnover, etc. 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.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Account Closed · Answer

8% is good rate for 25 doors. All those things you described most pm companies will do for you

What would get expensive for you is the new lease fee. Some companies take the whole 1st months rent, others half, i would ask for half of first months rent and 7% fee.