Long Term Rental Managers

[A Pudenz]

My investment group and I are looking to try a new manager for our long term single family homes.  In the past we have tried quite a few.  Last year our repair costs were 42% of rents which blew all of the previous years out of the water.  I feel that some of this is due to the age and condition of the properties, some to labor and materials costing more and some on the non-discretion of the two property managers we are using.  I want to get rid of one of the two and try another.  The list of ones we have used and are using is remax real estate concepts, RPM, Topshelf, and Renter's Warehouse, so I am looking for a different company.  I would like to get someone that has reasonable fees, quick turnaround, and the ability to handle repairs in a cost effective manner.  Please let me know your thoughts.

[Drew Sygit]

@A Pudenz the first thought that comes to mind is YOU need to learn how to better manage your managers:)

It's easy to allow a PMC to make decisions, but then you don't like how their decisions affect your profits.

Put tighter boundaries on them and get more involved!

If you still think trying another PMC will make a difference:

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

We also can’t believe how many owners hire the first PMC they speak with!

Then they 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

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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