Property Management Company Recommendations?

Question

My wife and I are actually getting our real estate investment journey started somewhat awkwardly. We have moved halfway across the country due to a job relocation. Since we bought our primary home at 3% interest rate, we’re pretty hesitant to sell right now. So we decided to enter the world of landlording.

We had hired a property management company, but it was such a terrible experience out of the gate that… let’s just say… we mutually parted ways. I now

Michael Smythe · Answer

@James BabbEncourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company. To avoid going through the same poor experience, keep reading. 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😊

Bob Stevens · Answer

What location ?

Melanie Thomas · Answer

I suggest initiating your search by visiting the NARPM website (https://www.narpm.org/find/property-managers/). They provide a convenient PM locator tool designed to assist you in locating Property Management professionals within your preferred area. NARPM serves as an excellent resource for all matters related to Property Management, offering valuable benefits to property managers of any scale or individual investors alike. In my role as the Vice President of the SAMAC Chapter of NARPM, I'm here to provide guidance and address any inquiries you might have. Feel free to reach out at your convenience. Good luck and happy investing!

James Babb · Answer

Really appreciate the thoughtful response. Lots of circumstances involved here, but I can’t deny I’m partially at fault for this going this direction. No ill will toward the property management profession at large. I know better than to use the expecting to try to prove the rule.