All Forum Posts by: Jason O'Quinn

Thanks Matthew. This should be really helpful.

Hi Kishan,

Generally I wouldn't hire a handyman as my P.M. Even though he says he is willing to 'deal' with the properties and tenants, if he hasn't done anything like this before he may be in for a surprise. However, it sounds like you live close enough to your properties that perhaps this arrangement will workout. I'll leave that part up to you.

I think your real question is how do you limit your liability. For that I would talk to a lawyer in your area. Also you insurance company. I hope these answers aren't too generic for you but depending on the size of your portfolio a lawyer might have some advice about a LLC, if you don't have one already.

Hi Carly,

When I left this particular management company i just moved on. I was mad for awhile but decided that i needed to do what was best for my company and not make it personnel. Although I suspected a lot more was going on, there were very few instances where the work was not done at all. I think I made the right choice to remove my emotions from the situation and call it a lesson learned. I don't know that that is what has happened to you, but my biggest regret was not firing this P.M. when I suspected something was up earlier. If your not comfortable with what's going on, then find someone else.

I've made a previous comment on what I look for in a P.M. now. Basically, I don't hire one man shows anymore. I look for a company that has multiple employees that specialize in specific areas of property management. They should have systems in place that take out most of the 'what if' questions you have. If you have a realtor in the town you bought your property a) ask them for suggestions for quality P.M. b) don't use your realtor as your property manager. (At least that has been my experience).

Good luck.

Hi Carly M.

This is a tough one, but not uncommon. I had a similar experience a few years ago and suspected that the P.M. was ripping me off. I found out later from an ex-employee that that is exactly what was happening. First off, did they do the work themselves or hire it out? If they hired someone out you should get a copy of the bill from the contractor. I get this for every job now. Second, contact the contractor company directly. Also, look the company up on line. Are they a real company or did the P.M. just hire his/her cousin?(this actually happened to me and the P.M. would double the cost of the jobs.). I also found that any time I made a call on my own to a random company, the quote always came in lower. In the end, if you don't trust your P.M. anymore then don't be afraid to move on. Eventually you'll find the right one, but many Property managers take advantage of long distance investors. Good luck.

It sometimes takes a little while to hammer out the details of your relationship with a new P.M. Also, I don't know if its the case here but I try not to hire P.M.'s that are one man/women shows. I deal with P.M.'s all the time that manage properties 100's of miles from where I live and have found that the best are the one's that have specific tasks assigned to specific people. They should also have cleaners and maintenance people that they employ or can call and that they have dealt with before.

Hi Ben. I own property in two different cities that are very far from where I live and have found that finding a good property manager is the hardest, yet most important member of a successful investment. I've gone through multiple property managers and though I can't say I've got a fool proof system for finding a good P.M. There are a few things I think I've learned from my own experience.

1) Look for a property management company with multiple people who have specific tasks. For example, one person may be the leasing specialist while some one else deals with the day to day collections and phone calls. Any time I've had a company that uses one person to handle all my P.M. needs it hasn't turned out very well.

2) Companies that use multiple people probably have systems in place. There should be a set of guidelines for how they deal with tenants and day to day management. What are their systems for rent collection? How about late rent? When do they start eviction? All these questions should have specific answers.

3) Don't be afraid to ask for services you feel you require from them. For example, I require copies of receipts for all work that they do or hire out to do. I've yet to have a company do this without asking but have never had a problem getting receipts when requested.

4) Don't be afraid to move on. Sometimes a P.M. is just over their head., other times they are just crooks. I've had both. I've yet to stay with the same property manager that I've started out with in a new market, but I've eventually found the right one. Once you have that it really provides confidence in growing your portfolio in that city.

5) All P.M.'s are 'great guys' when you first meet them. Beware.

Good luck.