Please offer me feedback on my current property manager

[John Becker]

Hello, I have jumped into investing in single family homes in Northwest Indiana,  in Lake county.  I now own 11 homes, and have been working with a property manager that I personally do like.  I would like to explain my results with the group and get your perspective on what is going on.  I have had 11 tenants placed in 2017.  1 went through entire eviction process,  1 left on August 15th, 2017 without paying august rent.  My property manager who placed this tenant about 6 months earlier, charged me $2600 to get the property rent ready, and I just got an email today, almost one month after the tenant left, that it is now tenant ready again. So of 11 people placed this year, 5 have been evicted.

I just found out that 3 more of my tenants have been filed on for eviction as they have not yet paid August rents.  Another person is being evicted tomorrow.  Of my portfolio, only 2 tenants are current on their rent.

The property manager tells me that if they were high credit people, they wouldn't be renting.  

I would love people to explain the 50% rule to me, as I am getting almost 50% of what my expected rents should be for these properties. I don't want to transfer my properties away from my current manager, but he does not return my calls, and makes me feel like I am a bother when I express my concerns.

I was so very pumped up to get into investment real estate, but now that I am having huge monthly payments for my taxes, mortgages, and insrurance, yet rarely am I getting rental income, I fear I am on the wrong path.

If there are any property managers or investors that work in Hammond, Gary, Hobart, or Merrillville that could offer me an experienced opinion, I would be grateful.  I can't change my Property manager's way of doing business, but I can change who I hire to manager my nest egg. 

Thanks

[Kyle McCorkel]

I would seek another manager.  I have found that it is kind of like dating...you shop around for someone who you think you are compatible with, and hire them to manage your properties based on your initial impression.  But you really don't find out how good they are until they actually perform (or don't perform).  I just fired a manager for the first time because the company was experiencing some crazy turnover which also caused some key items to get overlooked in my property, which in turn cost me money.  My patience only went so far.

Ask everyone you know, especially in the real estate business, who is managing properties.  One technique that worked for me was I emailed all the managers in my area the same generic email...short, asking a few generic questions.  I sent 7 emails...3 responded, and of those 3 one of them was a very condescending and rude response.  I interviewed the other two, and picked my favorite.

Lease up fees are normal but it depends on the market.  It is typically 50% to 100% of the first month's rent.