Bought 2 Occupied Properties for the first time at an Auction

[Erik Romo]

Hello All,

I recently bought 2 occupied properties from a tax Foreclosure auction, I had a commitment from a property manager to handle them. Then when I received the Deed from the county the property manager was nowhere to be found. I have called a few others but it seems they are not interested in making money since they never even had the courtesy of returning my calls.

I'm located in Detroit, MI so I'm trying to avoid having to deal with the tenants myself since they are my first rental Properties and I never liked the idea of being a landlord especially since I'm a licensed Realtor.

I'm thinking of offering cash for keys but i really wanted to have a Property management company handle the whole thing.

Anyone has any advise on property managers in the area? 

Also, Worst case scenario I was thinking of using any of those Online Auction Website to just sell the property if i cant get them to vacate the property in a timely matter. Any thoughts on this? 

Thanks

[Steve Rozenberg]

@Erik Romo

It is very important that you make sure you take the time to interview and have candid conversations with a PM company. Let them know your strategy, your goals and what your business plan is to ensure that your business plan aligns with theirs and you can both work towards the same goal. If they are not aligned then simply keep looking till you find one that is.I would look up NARPM and start with them..Below are some questions I would think would be a good starting point for you to see who really treats their company like a business or a hobby.

My business partner is a regional VP for NARPM and I am happy to help if you need anything please reach out

Questions to Ask prospective management companies

* What are your average days on market for vacant homes?

* What is your average rent amount for all properties managed?

* What is your average work order cost for the owner?

* What is your average make ready cost for the owner?

* Are all my invoices uploaded to my owner portal?

* How do you advertise your vacant units?

* Do I receive video of my pre and post make ready?

* Do you have a setup fee?

* Do you upcharge on maintenance?

* When do you make owner payments? How often?

* Are you a Certified Property Manager?

* Are you a member of NARPM?

* What is your Guarantee?

* Do you provide move in and move out reports

* How many pictures do you take of the property prior to tenant moves in and after the tenant moves out

* Do you get weekly reports when the property is vacant what prospective tenants are saying about your home

* Do you provide monthly newsletters to your tenants

* Do you hold investor education classes to help me become a better investor

* Do you have single point portfolio based management services?

* How many properties do the owners actually own themselves?

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits

* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?