Property Manager · Indianapolis · Member since 2015 · 46 posts · 34 votes
Hello, Our company has several properties throughout Indiana. Some are self-managed, others we use management companies. I am shopping for a fair Indianapolis property management company that does not survive on random fees charged each month.
For example, 8 months into a lease with a property management company, I have only had one month where no Misc/Repair/Fees were charged. One month out of Eight where we received the planned Net. This company holds a small balance out of rent for repairs or "preventative maintenance" (quarterly cleanings and inspections).
I am trying to find a company that either include small repairs as part of the management fee. For example we pay 10% of gross rent management fees, but about another 30% in random repairs and preventative maintenance.
I would much rather pay 20% of gross rents to the company and they absorb any small repairs!
Our other properties we plan for 10% management fee and about 10% in repairs to get our Net cashflow each month. Our Net Net would be Net cashflow minus taxes, insurance and CapX.
Are there any companies in Indianapolis that do not fee you to death ?
*simply my opinion* Firstly, Ethiosity is the the property management company I’ve heard the best reviews about from multiple sources in Indianapolis. They stepped in for a lot of investors when the whole Oceanpointe fiasco erupted and helped them navigate a difficult situation. Personally, I manage all my rentals myself. Reason being is that to have a viable management company in Indianapolis you must either have a book of business that is so large it supports the running expenses of your company (since rents are somewhat low here depending on what class of property you have) or they are a smaller outfit and have to nickel and dime every investor. So in short to look the most attractive to a management company you either need a small amount of class A rentals (little management needed and good returns on their time) or a large portfolio of lower class rentals. I looked into starting a stand alone management company (no trading of properties) and this is the conclusion I came to, I’m sure some will disagree with this assessment.
I use Ethosity. They are very upfront with their fees. They have a markup on repairs, but actually validate that the work was done properly (so I don't have a problem with it). I can't speak more highly of their ethics.
*simply my opinion* Firstly, Ethiosity is the the property management company I’ve heard the best reviews about from multiple sources in Indianapolis. They stepped in for a lot of investors when the whole Oceanpointe fiasco erupted and helped them navigate a difficult situation. Personally, I manage all my rentals myself. Reason being is that to have a viable management company in Indianapolis you must either have a book of business that is so large it supports the running expenses of your company (since rents are somewhat low here depending on what class of property you have) or they are a smaller outfit and have to nickel and dime every investor. So in short to look the most attractive to a management company you either need a small amount of class A rentals (little management needed and good returns on their time) or a large portfolio of lower class rentals. I looked into starting a stand alone management company (no trading of properties) and this is the conclusion I came to, I’m sure some will disagree with this assessment.
*simply my opinion* Firstly, Ethiosity is the the property management company I’ve heard the best reviews about from multiple sources in Indianapolis. They stepped in for a lot of investors when the whole Oceanpointe fiasco erupted and helped them navigate a difficult situation. Personally, I manage all my rentals myself. Reason being is that to have a viable management company in Indianapolis you must either have a book of business that is so large it supports the running expenses of your company (since rents are somewhat low here depending on what class of property you have) or they are a smaller outfit and have to nickel and dime every investor. So in short to look the most attractive to a management company you either need a small amount of class A rentals (little management needed and good returns on their time) or a large portfolio of lower class rentals. I looked into starting a stand alone management company (no trading of properties) and this is the conclusion I came to, I’m sure some will disagree with this assessment.
But to answer your question ethiosity.
More than just Oceanpoint - but you are right. They have stepped in multiple times when there have been bad actors.
You just have to find someone that fits with you. Some companies are flat fee (like ours) which can be nice and typically less than 10%. But you won’t find a company that is going to eat maintance costs. I’d be great if rentals did exactly what the spread sheets day but they just don’t. Some have had tenants in them that haven’t called us in 5 years and occasionally you get a hoarder that leaves 5 dumpsters worth of stuff inside. Just comes with the risk of owning rentals.
I will say the quarterly cleanings sound weird unless it’s a bigger multi unit with common space. Also, solid upfront rehabs (8-15k) when the buy the place doing things like LVP flooring, tiled bath, new counters, and all the preventative maintenance when the buy the place goes a long way to keep turnover and maintenance costs low. That’s what I personally do and recommend to our clients. Just take your medicine upfront and attach better tenants and have quick/cheap turnovers.