Looking for Property Management

[Gash Nookala]

Considering to get first OOS Rental in or around Huntsville. I am considering various options for Property Management. Like: Fully managed by PM or partially managed by PM (like special situations only). 
Any suggestions for good PM there?

Also, any suggestions on Long Distance Property management? (I got David Greene's Long Distance REI book and am reading it)

Thank you

[Nathan Gesner]

Quote from @Gash Nookala:

David has the right idea about building a team, but the most important player on that team is the property manager. A good property manager can help you focus in on the right neighborhood and property for the market. When you are reviewing property, they can help you determine rent rates and other numbers. A good PM can make a mediocre investment work. A bad PM can kill a great investment. If you can't find a good PM, don't invest in that market.

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Try interviewing at least three managers.

1. Ask how many units they manage and how much experience they have. Feel free to inquire about their staff qualifications if it's a larger organization.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest possible market? Are their listings detailed with good-quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

[Gash Nookala]

Thank you very much. This is very helpful. 
I also want to hear experience of OOS investors in Self Managing the properties and seek help of PM when specific issues arise. How successful were they in Self Managing from far away.

[Drew Sygit]

@Gash Nookala the only remote DIY landlords that succeed are the ones that already know what they are doing!

A lot of other novice rental owners, hire the cheapest PMC and then get ripped off with add-on charges or just poor service.

What do you define as, "special situations only"? A PMC will charge more for al' carte services.

[Gash Nookala]

Thanks Drew for the reply. By special situations, I meant: "When getting an emergency to be taken care of OR when a tenant showing/screening has to be done" etc. 

[Drew Sygit]

@Gash Nookala not aware of any viable PMC that will do these "on demand".

We get calls from DIY owners each month, that want to hire us to do Maintenance only. We politely turn them down as we only do maintenance for our clients. 

We also won't do just showings for a DIY owner. Even an agent won't typically do these unless you hire them to place a tenant.

You seem intent on being cheap, thinking you have to be to save money. 

There are many posts here from investors admitting they should have hired a PMC sooner. 

Of course, there are other investors that post they have their own setups to handle what you're asking for.

Suggest you look into MNT services like Task Easy, Task Rabbit, Porch, etc.

[Aleah Hutchinson]

Wanda at Property Connexions is Great

[Michael S.]

@Gash Nookala - I am unclear why you would want to have LTRs in Huntsville and self-manage them remotely.  Are you going to handle 1 am toilet leaks?  Are you going to learn all the state and local ordinances to protect yourself from legal mistakes?  I'd recommend you hire a local PM to handle these issues if you are out of state and not familiar with the area.