What to ask a property manager

Question

I'm looking for turn key property management on a single family house.  What do you look for in a property management group and what terms do you want in you contract?  Some have flat rates, some have percentages, eviction coverage, etc.  What have you found as must haves and questions you wish you had asked, etc.?

Michael Smythe · Answer

@Steffany Kluttz you want to screen a PMC better than you would a tenant!

Our company wrote a blog series right here on BP about this topic, but if I copy the link here, we are flagged by moderators for "self-promotion"!

You can try to search for it though.

Account Closed · Answer

I agree with most of this. But 'ask to see their financial statements'? As a business owner, I would never show a prospective client my financial statements. And in 20+ years of property management, I've never had anyone ask that.

Michael Smythe · Answer

@Steffany Kluttz if it sounds too good to be true - run!

Grace Gudenkauf · Answer

Also make sure to understand if you have to pay them their fee whether or not rent is collected. I know plenty of landlord who have had to still pay their management fee even on uncollected rent, so just make sure you completely understand all of the fee structure.

Andrew Syrios · Answer

This would be a good place to start https://www.biggerpockets.com/blog/property-manager-question...

Engelo Rumora · Answer

What's the deal with Mynd? They seem to be more than just a PM?

The fee structure in PM is so complex just looking at other companies and my own lol

It would be nice simplifying it from a consumer standpoint.

We rolled out a monthly flat fee and thus far investors like it.

Might completely transition to this model eventually.

But all in all PM's have so many different fee structures for the various markets, asset and property types

Diego Alvarado · Answer

I am seeing good answers here, even though you have to do your due diligence, the approach that I would take is:

To select the property manager to contact:

1. Verify reviews in google or other platforms

2. Ask Real Estate Facebook group for recommendations.

3. You could find new property management companies, in that case they will miss the reviews or recommendation so check if they are open about who are the people in the management team.

When talking to the company:

1. Ask for process and procedure guidelines (in here you have to look at the inspections frequency, and how their proceeds are with them, eviction and tenant screening)

2. Fee breakdown (sometimes there are hidden fees)

3. Reporting (how do they report the status of the property to you)

4. Contact (how you are managening your account)

5. Communication when you have a question.

All these will give you an idea of who fits your needs. There is no always a company that fits all. It always depends on your priorities.

Jerry Ta · Answer

There's been some consolidation in the market with some large PE backed companies such as Mynd and Poplar. Lets say, those companies have helped my business get new clients, as their clients are leaving.

Jimmy Marks · Answer

What party of Houston are you looking for a property manager?

Engelo Rumora · Answer

When you decide on your ideal structure that you feel suits your market and SFH the best, a quick tip would be to look at the reviews from both tenants and landlords.

What to ask a property manager

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