All Forum Posts by: David Woz

Sadly, a lot of what you describe is a byproduct of law changes by those in Sacramento and California voters. Drug use and theft has essentially been made legal with no consequences if caught. Being just a few miles away, it isn't unique to S. San Jose and will get worse before it gets better.

Very interesting story. Thanks for sharing. What a great way to learn the business.

1 Vote

Originally posted by @Joe A.:

@David Woz

It’s time for you to get a new PM. I dealt with one that was similar and have a relatively good one now. I wish I would’ve acted sooner than I did, though. Fire them now.

Is your manager in the DFW area? If so, DM me the info if you recommend them.

0 Votes

Originally posted by @Shirley R.:

@David Woz

Find a different PM for the new property. If they're better, give them the old property too.

From my experience with PM, they not only suggested the insurance cover the roof, they fought the insurance till it was paid too. A few years later they also got the same house completley resided by the insurance.

On the other hand, they charge a whole month for leasing...

This is exactly what I was thinking... I close on a new one this week and will be sending it somewhere else...

0 Votes

Originally posted by @Angie Shires:

@David Woz have you contacted the owner of the PM Company directly? They may have no clue that their property managers are unresponsive and not doing their job 100%. I would start there! As stated earlier, change companies and just change problems!

As far as the contractors, while it is their job to help with that...I'd have a list of preferred providers set aside to call for every repair imaginable. Let the PM know those are the providers you want to use and communicate with those contractors on a regular basis. Relationships are everything!

We teach people how to treat us, do your due diligence and maintain constant contact with your PM...they will learn quickly and won't want those accountability phone calls. On the other end, you must be active in your investments.

Good luck to you!

I never thought about having my own people for them to call first... I like it. Thanks!

0 Votes

Originally posted by @Chuy Gonzalez:

The only question is why haven't you gotten rid of your PM already? i was in a similar situation, and i let it go on for far too long, but the biggest problem with my PM was lame screening, lame tenants and lots of evictions. Everything falls apart with bad people. I looked at yelp for PM ratings. Cut them.

I guess I haven't let them go thus far for a few reasons...

It is a pain in the *** to switch.
They do actually get some things right. Never had an eviction with them... they do produce quality tenants. They are good with the bookkeeping and quick with their payments back to me... So, I do appreciate that and recognize those things are huge and they get that right.

After reading everyone's feedback, it is clear I need to look around...

0 Votes

Originally posted by @Bill B.:

New lease fees are debateable, I pay $300, not 60% of lease, but that’s vegas. But $400 to renew is INSANE! My biggest pet peeve with current pm is $150 to renew. They email the tenant a 1 page form with the rates I gave them. Tenant says “I want this” and I get charged $150. You’re getting charged $400 for less than 10 minutes of work by a person making $20/hour?

So you're starting the year down $600, you need to charge an extra $50/mo just to cover the overages. That's $4k per year on 7 properties. Try a local REI or start a new post asking for DFW management company recommendations. In that big a market there has to be a couple decent ones.

Great to see real numbers of what others are paying... even if it isn't in my market. Very helpful! Thanks!

0 Votes

Originally posted by @Account Closed:

So, you expect the management company to run around and price shop every time for every repair? And you think how much is fair compensation for that? How much is your time worth per hour?

I would have my own contractors too if I ran a management company and if the owner wanted to go around and get their own quotes - be my guest. You are not getting a discount for that. I would also likely take a percentage of every repair too, including the ones where the homeowner insisted on the contractor. General contractors usually charge 20% and the client does not always get a say in who the contractor hires there either.

The problem is that there is in fact not really enough money in the deal to pay for the services required. Whenever that happens in any business, stuff goes wrong. I do see your rents are decent, so that is going to help on that score.

You are also trying to have it both ways. You want to hire it out, and then you want to step in when you decide you can do it better.

This is what you signed up for my friend.

Now that you have 6-7 in Dallas, maybe you could afford 1 in your own back yard? You could be your own PM and take that piece for yourself. Like Thomas said, you either manage your own property or you manage the manager - take your pick.

Good luck in any case.

I do expect them to keep to their word.. While I don't expect multiple bids, they claim to do "volume" with contractors and get volume pricing... I haven't found that to be true... Calling a reputable painter myself for instance has produced quotes literally half what they are charging me... In that case, two or three hours on the phone over a few days saved me over 2,000.00.

As my PM I expect them to push back on contractors on my behalf, not justify their nonsense... In the case of the microwave, I expect them to use common sense and push back against a bill like that.

3 Votes

Originally posted by @Theresa Harris:

I admit I did smile when I read "Despite me asking them to get quotes and they ignored it. I ended up making a special trip out to inspect myself and purchased another property when I was out there.". I'm imagining your trip out to find another property manager may result in house #8.

I suspect you will be correct :)

0 Votes

First some stats:

I have 6 going on 7 doors in the DFW area
I live out of state
Rents range from 1400-1950 Per Month
I pay 8% Per Month
60% of first month's rent on new leases
$395.00 flat rate for renewals

Getting to the place where I'm considering looking for a new manager... Here is why... Looking for some advice if I'm being unreasonable and if from your experience you can get better rates.

My complaints seem to be focused on maintenance issues. Here are SOME examples:

A unit was vacant and someone left a old microwave on the front step.. (Who does that by the way). Anyhow, I was charged $225.00 for "trip and disposal" fees to throw it away. Keep in mind that I was paying for garbage and they could have simply have thrown it away in the garbage can a few feet away. Weeks of back and fourth, they blame it on the contractor and refused to budge on the issue. I hate being "nickel and dimed" and this kind of thing just drives me crazy.
I get a notification of a leaky roof on a property. It includes photos of missing shingles and an estimate of 1200.00 to repair it. I follow up their email with a call and ask them why my 8 year old roof is leaking and their answer is "I dunno, doesn't really say... but it can be fixed." Duh... I ask them to get me a quote to replace the whole roof, they never did... they just ignored my request like it never happened and then followed up with me asking if I want to move forward with repairs. I literally call a roofer I found on Yelp who was amazing. He went out, told me I had significant storm damage and recommended I turn it into insurance. I was able to get a whole new roof with warranty, through no help of my property manager. When it came time to inspect the work, my property management company wouldn't go out and inspect because they didn't hire them.... Despite me asking them to get quotes and they ignored it. I ended up making a special trip out to inspect myself and purchased another property when I was out there.
Quotes to do painting and other make ready items are outrageous... I can easily get quotes with some phone work and significantly beat their quotes on virtually everything.... their price is about double.. And they claim the don't add on to their quotes from contractors.

Getting someone on the phone can be challenging. Getting someone after hours is impossible...

On the plus side, their online system is pretty good... all documents properly loaded, reports of who paid and when are accurate and the money is forwarded in a timely manner.

Are these kind of stories par for the course? Am I being too demanding? Is the grass greener?

I feel I'm overpaying for what "Service" they provide...

Anyone with similar experiences? Advice?

2 Votes

My wife and I will be in town this weekend.

I'm looking for an investor friendly agent (who preferably is also an investor) available this Sunday.

is there anyone on here or any recommendations people could send my way?

We are cash buyers and looking for properties in the 110-170 range.

Thanks

0 Votes

Houston, Texas

All Forum Posts by: David Woz

David Woz has started 7 posts and replied 43 times.

Post: Diary of a leasing agent " Are the Monkeys running the Asylum ?"

Post: IS it me, or my Property Manager?

Post: IS it me, or my Property Manager?

Post: IS it me, or my Property Manager?

Post: IS it me, or my Property Manager?

Post: IS it me, or my Property Manager?

Post: IS it me, or my Property Manager?

Post: IS it me, or my Property Manager?

Post: IS it me, or my Property Manager?

Post: Investor Friendly Agent for this weekend