Hiring PM company for renovations??

[Ruben S Paul]

Good afternoon,

Is it possible to hire a property management company to handle cosmetic or major rehab to a property? There’s a property that’s I am interested in as a rental but I would like to be as hands off as possible . If not are they any other options ?

[Will Fraser]

Hi @Ruben S Paul, if the PM company knows their way around a rehab and is trustworthy then it can be a great fit!  There is a often a frustrating game of "herding cats" that can happen when trying to use a separate contractor AND a management company that is capable of integrating with construction thanks to both of the groups having distinctly different processes.  To the counter, though, I often see that PM companies do things that violate the ethos of the investor.  This happens when things like using a premium paint contractor instead of a budget painter or a handyman with oversight.  It matters greatly to an investor's returns if you pay $4,500 for a paint job when the same paint job could have been rendered (with a 15% reduction in quality and showmanship) for $2,500.  That $2k is frequently a year of cashflow for an investor and the PM and contractors better understand that or else they will shaft their client for their own benefit.

However, if you're keen on it and have a PM that you would trust with it then Boom!  Sounds like a great simplification.