Interviewing Property managers. Please share your recommendations

[Francisca Mac]

Looking for recommendations on great property managers for small multi unit 1-2 in the Charleston,SC. 

Thanks. 

[Randall Alan]

Quote from @Francisca Mac:

Thank you so much for all the advice!  I had actually already done that but now that we have decided to actually run it ourselves I’ll read over it again. Any other suggestions or advice is very appreciated and feel free to message me directly. Thank you again for helping me to make the decision. 

@Francisca Mac
You will inevitably run into Tenants who cannot pay for some reason or another, as “life happens” in real time.  You want to develop a plan for how to handle that in advance.

In our book, payment history & longevity play a “first factor” in how we respond.  So if “they are never late” and they are late, we will tend to roll with them to try to help them out if the reasoning makes sense. We may waive the late fee to try to help them etc.  

If they are “always late” we'll let the late fees stick to compensate us for having to put up with their inability to manage their finances.

But at the end of the day you need “outer boundaries” that you stick to.  There is a slippery slope syndrome that can occur.  Maybe they lose job and they tried to pay but couldn’t pay everything this month, so they are behind by say $500, but the next month it continues and now they are behind by $1,000.  Two things need to happen… one, get caught up, and two, get back on track with the upcoming rent as well.  It’s hard to do for paycheck to paycheck people.  

You have choices though… from being the butthole landlord who tolerates no being behind… files eviction at the first drop of the hat, to the softy that gets exploited.  We have ended up being the latter a couple of times in 7 years because we started off trying to be helpful, but have put policies in place to avoid it:

Our rule of thumb is that you can’t be behind by more than your security deposit.  Obviously the security deposit is meant for a different purpose (towards damages and repairs)… but it acts as a goal post for us.  

Once you are behind, we require forward progress towards catching up - which looks like this;

Let’s say you are behind $750.  We will advise the tenant that in the coming month we need rent paid on time and within the month we need 1/2 of the back rent paid as well.  If it has slipped too much, we may make it 1/3 of the back rent paid. And if this is not accomplished and they exceed their security deposit we will advise them we will have to file for eviction.  

The secret is that you can’t continue to let it slip further and further behind.  Where we have gotten busted in this is that they set a payment, then 4 days late it bounced, so they say, “Oh, so sorry I’ll set a new payment” and then that one bounces too.  That is the slippery slope to watch out for. 

So develop your policy, whatever it is up front, and stick to it.  We try to be flexible, but firm, because no one really likes a butthole landlord.  

All the best! 

Randy