All Forum Posts by: Dan DeMott

Most property managers will contract out the actual work, but will coordinate the repairs/insurance adjusters/contractors as part of their management service. 

Don't feel bad though, you are experiencing a natural growing pain of real estate investment. 8-units is a real portfolio; in my experience most investors start to seriously consider professional management once they reach 8 to 10 units. This is a good problem to have!

I think you're on the right path, just not-quite the right team. 

Hi Susan,

If you are collecting the checks, dealing with the utilities and running the marketing while your property manager earns 10% plus 1-month leasing fees, I think you need to re-assess your property management. 

For what you are paying, you should have a full service solution.

For what you are getting, you should be paying much less. 

Also, does your property manager have a real estate license?

@Gary Dezoysa , as a property manager, I often use the strategy you describe to win business. Some investors have not yet been as fortunate as Chris Kennedy  to find the right property manager, and the friction cost is high to make a change. I ask investors to give me a chance with one of their properties for 6 months. I find I am often rewarded with additional contracts.

@Chris Kennedy , I totally agree with your post and those are great tips about transparency and communication expectations. I am also a huge fan (as both an investor and property manager) of keeping interests aligned. 

Great topic and great thread. Good tips here.

This post is bound to get lots of attention because it is a very common frustration. Most of my clients who have used a property manager in the past have a story of their disappointment and frustration. 

That said, I also know many, good property managers who create value for their clients, have compensation that aligns with their clients' interests and have implemented professional policies and procedures to maintain service levels while growing their business. 

I think you have some great ideas to help people identify the best property managers in a given market. Like all good markets, the cream should rise to the top if there is more transparency and accountability. 

I'll be following this thread to see what others say. It would be interesting to do a poll to determine what issues create the most investor frustration. 

Hi @Chris Koski ,

Welcome to BP. Lot's of great real estate investment groups in Palm Beach County. You just missed a great meeting last night. Be sure to check Meetup.com or send me a message to get the meeting schedules. 

There is lots of opportunity out there. Learn as much as you can, and get out there.

Good luck and keep us posted.

@Vicki Gleitz ,

Your energy and passion comes through in your post and I hope you will share some photos of the home when finished. 

My personal advice, don't be too concerned with section 8 or not. If you're improving a property in a rough neighborhood, you're creating a great home for somebody. I would advertise the property widely, and encourage neighbors and churches to refer potential tenants. You never know where the perfect tenant will come from. 

Lastly, while I truly, truly appreciate where your heart is. I must suggest developing prudent tenant screening criteria and sticking to it. In these markets, you will hear many stories and excuses for bad rental history. You deserve a tenant who is as honest and thoughtful as you are, and screening criteria will help you make that decision objectively. 

Good luck, and please keep us posted.

Great videos. 

Turning around a tough property, with a bad track record takes outside the box thinking. You have to give him credit for that. 

Thanks for sharing.

Hi Ezra,

I would suggest actively involving your new PM in the transition process. The proper handling of security deposits and utility accounts is crucial to a successful transition. Your new PM should take the lead on this to make sure everything is done to their standard.

I was just retained to replace a PM on a 10-unit portfolio and plan to have a meeting with the current PM and owner so that everyone understands the expectations and critical deliverables. I have also structured my engagement so that there is a no-charge 30-day overlap between my contract and the current PM's, so that we are both actively engaged in the transition. 

No reason for this to be a difficult process, as long as you set the expectations for all parties and hold your new PM accountable for getting things right. The new PM should be just as vested as you in getting this done right.

Good luck, and keep us posted.

Hi @Phil Mays ,

Unfortunately, I hear this story too often. Be sure to review your property management contract to understand ALL of the fees your PM may be charging. If it is unclear or allows the PM to collect fees you feel should be due you (I agree with you), this might be a good opportunity to renegotiate or look for a different PM.

Good luck and keep us posted.

Hi @Kyle Kelley , yes, sorry for the brief reply in my previous post. 

As Beth and James covered, it is fairly standard for tenants to make payments to the manager directly and the manager will send the net payment to the owner. 

Good luck and keep us posted.