Having a bit of an issue with some of my out of state properties. I have a smaller property management service in this area that handles everything since I purchased the properties a little over a year ago. Most units were occupied when I purchased it and we moved into full occupancy shortly after. These are passive properties for me but I noticed my operating account was depleting significantly. The ROI's were pretty great during my analysis but it wasn't panning out that way. Communication from the company was spotty at times. Whenever I inquired I was told something different and assured it would turn around. Once or twice during the year I came thousands additional out of pocket to fix some alleged issues with the properties. The company was using tenant cloud and later switched to a different rent manager program. Upon looking at income and expenses, I found the rents collected were right at what I estimated. The expenses however were astronomical….and almost all of them were payments to the management company as opposed to directly to the repairmen that were supposed to be doing the work. These properties include some of the nicer rentals in the area that are relatively new construction. I noticed a lot charges directly to the management company with notes like "cleaned up branches" "scraped paint"…..things of that nature. I just got my 10-99 and it seems crazy to me. In 2022 the rents collected over $73k. I only received $13k into my account over the year. $13k is about what I injected for the repairs so I effectively received zero dollars and paid the entire years mortgage out of my operating account. I've looked into other management companies but it is a relatively small town and slim pickings as far as management companies go. What is my best course of action here?
