PM Companies Expanding Out of Immediate Market

[Brandon Weis]

I know there are large property management companies that manage properties everywhere, but I am curious how they overcome all the challenges of not being near the properties. I think many can be easily overcome like finding an attorney and contractors in the area, but the most interesting challenge I can think of is how to hire someone to deliver late payment notices one day a month. We obviously handle the ones near us in-house, but hiring someone in another market to work one day a month is a bit of an odd task.

My guess is that remote property management companies need to have a sort of Swiss-army-knife person in the area that can do many variable tasks for them and works on an hourly basis as there may not always be things to do, but I don't know that for a fact.

How do remote/long-distance property management companies overcome the challenges of not being in the area? And what are the challenges I'm not even thinking of?

We are not expanding outside our immediate area yet, but the thought is there.

[Nathan Gesner]

Quote from @Brandon Weis:

As a property manager, I know we do a lot more than collect rent and post notices: 

Move-In and Move-Out Inspections

Property Showings

Routine Inspections

Tenant Screening and Interviews

Maintenance and Repairs

Vendor Management

Handling Emergencies

Neighborhood Relations

Lease Violation Management

Curb Appeal and Landscaping Checks

I opened in a new market (just 30 miles away) about six years ago. I waited until I had enough properties to justify an employee. I started out losing money because of employee salary and office space, but we quickly grew enough units that it paid for itself and then became profitable within a year.

If you want to pursue this, I recommend finding an existing PM company that wants to sell. Buy them out so you have enough units to pay for staff and whatever else is needed.