All Forum Posts by: Jessica Young

Quote from @Josie Sandoval:

You'll have to investigate. They may be charging a full month's rent for the leasing fee and keeping every penny of it. Ask them to explain their fees or let you review a copy of the PM Agreement to better understand. And shop around! Different companies have different fees and - more importantly - not all managers are created equal.

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Hi all!

I'm picking up on this thread as currently trying to narrow down my property manager search in Houston. Thought I'd check in to see if people's recommendations remain the same 3yrs later!

@Account Closed I'd be interested to know who you went with and whether you're still with them?

@Fred Weiller Please can I check if you're still with ELDA and remain happy?

Other property managers on my list include:

1st Class Realty

Green Residential

Empire Industries

Precision Realty

Olympus Nelson

Ashoka Lion

Terra Residential

Real Property Management (htownrpm.com)

I'll be renting out SFRs. Input on any of these or other recommendations are much appreciated!

I just started working with THD, I had the same situation as Shankar Ramani

I had a 3/2 SFH posted for LTR, they reached out asking if I am open to short term rental, I was hesitant first but after searching the company and their business model, I was willing to take the risk if they pay me a good premium

The person who reached out to me works with the insurance side of THD ( they have corporate leasing department too), and her tenant had a fire damage in their house so the insurance company wanted the tenant to stay somewhere until the house repair is done. I got lucky that the tenant wanted a house in my neighborhood to keep kids close to their schools

House was listed for 1750, they offered 2250 but I declined , so they offered $3k, ended up renting the house for $3250 ($250 pet rent) per month, for 3 month, open to extension if needed.

I met the tenant and did the background check on them, I felt comfortable renting to them 

THD takes time with approving the property, but they were quick to approve the lease, and they sent me the checks the next day after lease signing

My house is not furnished, and they were ok with that , they actually work with a company that provides furniture for the tenant, and they coordinate the delivery and setup of furniture on the lease start date

Overall I like the experience working with them , but hey today is day #1 (out of a possible 3 months), so I will update this post if anything wrong happens or if I notice any red flags

What are you doing with it now and why are you considering changing its use?

We’re splitting the tree trimming fee, (supposed to anyway) water is transferred, papers close to signing, intro LTRs & new leases standing by. I think I told you the 5th, but it’s actually the 4th for closing. 😬 😆 

Quote from @Jessica Young:

Quote from @Richard F.:

Aloha,

First you need to check local LL/Tenant laws to see if you are limited as to the SD amount. Also, you are essentially allowing the person to "buy" better credit, which can be frowned upon by Fair Housing. If one person is able to, all applicants need the same opportunity.

My state doesn’t cap the SD. Can you explain the “buying better credit” thing? If collections would’ve come back on other applicants credit checks, I would offer them the same thing if I wanted to approve their application. 

 The Fair Credit Reporting Act requires an "adverse action" notice for any denials AND "conditional" approvals, where you require additional deposit, rent, co-signers, etc.

The basis of Fair Housing Violations is, pretty simply, treating one person differently from another. Particularly if you use a credit score as one of your criteria, yet you accept someone whose score is lower by paying additional money, this can be problematic for you. The important, and often overlooked aspect of Fair Housing, is that it does not matter what YOUR "intent" is. It only matters that a person "perceives" they are being discriminated against, in order to file a formal complaint. If you have varied SD amounts that are not consistent with the actual monthly rent, this can be difficult to defend, particularly if you keep no historical records of your decision process. Your records should include details indicating WHY certain approvals are conditional. We keep all denied application packages, and historical Tenant application packages, complete with our contemporaneous notations on each..."just in case".

Aloha,

First you need to check local LL/Tenant laws to see if you are limited as to the SD amount. Also, you are essentially allowing the person to "buy" better credit, which can be frowned upon by Fair Housing. If one person is able to, all applicants need the same opportunity.