Property management company recommendation needed

[Tony Huang]

Hello,

I'm looking for a property management company for two of my rentals in Morrow, GA. Does anyone have any recommendation? I'm a long distance investor so good PM is crucial for me. Some of the quality that I'm looking for:

1. Prompt at responding, both to me or tenants

2. Won't nickel and dime me in terms of property visits and scouts, repairs, project management etc.

3. Have reliable and reasonable priced GC or vendors resource for repairs, maintenance, etc.

4. Long distance investor friendly. Cares about what investor needs most. I'm fairly new in this game so need someone who could provide valuable advice, from investor's perspectives.

5. Last but not least, honest, open minded and straightforward.

My current PM is doing ok mostly but recently the point of contact that I have from that company is very unresponsive (calls and emails), even in the middle of one major repair of one of the rental. It's very frustrating every time I pick up my phone only to hear voice mail box or sent an email w/o any responses in weeks.... He was also not familiar with the physical condition of the property itself which makes me not confident at all to take advice from him regarding whether certain repairs or actions need to happen to the property. It's almost like he know just as much as I know, from the report and pictures GC sent to him, not from his own eyes. (And yes, they charge for every property visits...) They seems not taking very good care of my properties which starting to make me think it's one of the contributors of my high spending on repairs of those two properties. They only charge 6% monthly management fee, which as far as I understand is on the low side. However, I won't mind pay another 2% if I could rest assured someone good is taking good care of my properties and tenants and I could enjoy stable cash flows at home.

Thanks in advance for the recommendations! 

Also feel free to comment on what other things I could do to lower my repairs. I've owned them for more than a year and aside from appreciation, I'm having negative gain because there were like 5 repairs already and one of them cost me ~6k...

Best,

Tony

[Nathan Gesner]

I can't answer your question about repairs without knowing all the details. I do know that it's common to buy an investment property and have expenses hit you the first year. Some of these are because you are a new owner and seeing things the older owner just lived with. Or maybe the tenants are willing to report problems to you because the old owner was unresponsive. Or maybe things just break.

As for property management, 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 addendums. 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!