Property Management Referral in Puyallup, Washington?

Question

Can anyone refer a high quality, low cost property management company that serves Puyallup, WA? I have been self managing my local properties but recently acquired one out of state and would like to consider using a property management company for now. Thanks!

Sherief Elbassuoni · Answer

@Sarah Greear, I will send you a great company!

Corby Goade · Answer

Low cost property management is almost always very, very expensive- literally and figuratively. Most of us understand that from a practical standpoint, but we have to learn it the hard way.

Margins in PM are pretty slim- if you think about the cost of operating a PM company with a few employess and a couple hundred doors, there's not a ton left over. I like to look at PM as insurance from the perspective of the client and the PM company. When things are going well, it seems like you are just throwing money away, but when things get rough, you'll be glad that you have someone in your corner.

Funny anectdote about this concept of "cheap" property management. I own a mid side company and we charge 9%, no other fees at all. I had a consult 18 months ago with a remote investor who really wanted to work with us based on services and reviews, but I refused to discount our services and he found someone to do it at 7%.

He called me back last month and said the PM he chose had been stealing from him and totally neglected the property and now he had capex and a non-paying tenant that he needed evicted and wanted to know if we would jump in. Ironically- he told me that he was only willing to switch if we would match this current PM rate of 7%- yeah, the guy who was stealing from him and creating all kinds of problems and liabilities. I told him no and he stuck with his current guy. That 2% difference in our pricing would have worked out to about $25 per month. Seems like his ROI on that $25 would have been pretty good- I mean, he was making $0 per month AND being stolen from.

When you are dealing with assest that are hundreds of thousands of dollars, in many cases it's your entire life savings and your retirement- it's best not to step over dollars to pick up dimes.

In any occasion, I hope you find an excellend PM and make boatloads of money!

Drew Sygit · Answer

@Sarah Greear "high quality, low cost" is a contradiction, as in any other business.We can’t believe how many owners hire the cheapest PMC they can find - then complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

Even if someone give you a referral, don’t make the mistake of assuming the PMC will meet your expectations, just because they met the expectations of the referral source.

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

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Property Management Referral in Puyallup, Washington?

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