What is most important to you when working with a property manager?

Question

Hi All,

I am working closely with a company to identify what key factors are most important to us when choosing a Property Management company. I own 6 doors currently and know what I think, but I would love to hear what factors are most important to y'all (communication, on time payment, guaranteed rent. eviction assistance, etc.)

No wrong answers!

Dan J. · Answer

@Nathan Gesner - Could not agree more! The best policy is honesty in my opinion / experience. For you personally what do you consider timely? @Laura Stayton - I like the $250 threshold idea. It seems like it would provide transparency and put the owners mind at ease if there is "an issue" that is large they have a front-loaded idea of cost or will be notified if it exceeds. @Jay Thomas - Very well said. I think both parties understand it is a strenuous process (at times) but does not have to be. I think generally the good ones are so desirable because of this.

Laura Stayton · Answer

EXPERIENCE rules. Some owners want to be really involved and some just want to be notified of big repairs. Being flexible to work with whatever the investor wants is key. We have an online portal where owners can sign into and see who paid, minor maintenance etc. We notify owners and get approval for any repair that would be over $250 before it's done (unless it's an emergency after hours such as a burst pipe or no heat in the winter - east coast here!) And then we notify next business day or shoot an email overnight when we call the contractor and let them know what's going on.

Dan J. · Answer

@Nathan Gesner Yes! We very much align. I tend to think open and honest communication is the best policy. This does include bad news as well. I have found most owners understand bad things happen, they just don't want to be in the dark.

Ryan Lesley · Answer

Hey @Dan J., I agree with both @Nathan Grabau and @Douglas Patterson said, what is their motivation for managing properties and are they good communicators. The other things I would add to that are, what do their fees look like? Are they nickel and diming me with admin fees and opening the filing cabinet fees? Also if I continue to bring them doors (or many doors) are they offering discounts/ better rates or are they sticking to flat rates. hope that helps and best of luck 🤝🍀

Douglas Patterson · Answer

Attention to detail and communication are key! A good PM is one that understands things are going to go wrong but has transparent and effective processes in place to be as proactive about issues as possible. Another thing to look for is if their incentives line up with yours. Does their company benefit from things that don't benefit you like turnover/evictions or are they designed to better align with your interests? Food for thought!

Nathan Grabau · Answer

I want someone who owns property themselves. The most ideal back story a property manager can have is they were managing their units and decided to help other people with the systems they use. I am still willing to use someone who went the other order, property manager turned pm + investor, but this is less ideal.

Ben Scarborough · Answer

Watch out for the hidden fees!

Matt Broccoli · Answer

1. Do you know, like, and trust them?2. Communication is essential. 3. Transparency. As a PM myself, I strictly manage and put myself in the homeowner's shoes. I also believe in partnering with good people according to the criteria above on my end. Number of units shouldn't matter but quality does and reviews are crucial from google to airbnb. Huge. Also make sure they have experience. Lots of people are in this business now and co-hosting experience on the VR platforms is crucial not to mention a myriad of other elements as well.

Dan J. · Answer

@Jesse Sasomsup - Great read. Love the idea of not settling for the one size fits all approach. Different submarkets require different strategies even if they are in the same metro area in my opinion. I could imagine dealing with a tenant leaning market like LA has its challenges, I like how you laid out your goals when it comes to tech, strategy, communication, and owner needs.

Nathan Gesner · Answer

When you reach out to the PM, they should respond within a day, even if it's just to tell you that they'll get back to you in three days. I hear too many complaints from people that reach out to their PM and don't get a response for weeks.I train my staff to be proactive in communication. Instead of waiting for owners to call with questions, we send them regular updates when there are any changes - or upcoming changes - to their income stream. Tenant gives notice, we notify. We need to spend $400 on plumbing, we notify. Rent is short because we paid their annual HOA dues for them this month, we notify. They have extra income because the Tenant is breaking the lease and paying an early termination fee, we notify. Proactive communication shows that we are in control and puts the Landlord at ease.