All Forum Posts by: Jim Brozny

@Nolan Mahoney

You might already be aware the City of Elgin requires a landlords license and a mandatory Landlord Training 

@Kristine Norris.  It's smart to keep in mind that property management companies are businesses and they need to make a profit.  Like any business, they will make decisions based on what's best for their business and maximizes profit.  Rightly so.  Sometimes that works in your favor, sometimes it does not.

Owning an investment property is not like owning a stock.  Stocks don't need a roof or plumbing repairs. Those cost YOU money and time.  A PM will help to take some of the burden from you, but they'll do so in a way that benefits their business first.  And there is nothing wrong with that.  You have to decide if its worth it to you.   

I agree with @Steve Vaughan, @Chinyere Orie and others on this thread that recommend managing the property yourself if possible.  You'll develop first hand knowledge of the business and put yourself in a better position to know the value you want from the PM that manages your hard earned asset. 

@Lee Stephens I own a couple properties in Elgin.  One of which is a duplex with a separate cast iron boiler for each unit.  I can attest to @Travis Gulley's comment.  The boilers are original to the building which was built in 1970 and they work just fine.  I have an excellent HVAC guy that specializes in boilers.  He told me the same thing Travis said in his comment.  Glad to share his name if you're interested.  

@Justin Reyes 

I’ve been an investor for 20 years.  For the last 10 years I've hired multiple management companies to manage my properties. Here is what I find important. Maybe you’ll find it helpful:

Value – Your list looks like a standard list of services. To provide those services, some companies charge a percentage of rent and an administrative fee. Other companies charge a simple flat fee per unit. Assuming the services are provided adequately and equally, which model provides the best value to me?

The same goes for lease renewals – some companies charge a flat fee (or no fee at all), others charge a percentage of monthly rent. For those that charge a percentage of monthly rent, what is the extra value they bring to the renewal? Why does it cost them more to execute a renewal on a $2400/mo unit vs a $850/mo unit?

Maintenance – some companies have in-house maintenance teams. How those teams are managed and utilized is important. For example, my management company charges $70 per hour for a call. If they cannot fix the problem, they call a contractor. Often the contractor charges a visit fee. Now I have two fees. Not necessarily a good value for me.

Partnership – What kind of management company do you want to be? Or maybe another way to ask is what kind of clients do you want? Are you a full-service, one-stop shop for owners that want nothing more than to receive their monthly payout? Or, do you mind having an involved owner that pays attention and understands the market and industry? Personally, I’m looking for a company that views me as a strategic partner – not just a set of properties to insert into their daily processes.

Transparency – Responsiveness and communication are very important, but visibility into my properties is just as important. In addition to monthly and yearly financial reports, I’d like to see detailed, monthly maintenance reports. I know applications such as Buildium and Appfolio provide any number of reports to owners. However, it’s at the management company’s discretion to make reports accessible to owners.

I agree with what @Matthew McNeil says about quality and efficiency. Scaling is a challenge. I’ve been fortunate to work with a couple good companies that went through significant growth periods. But through the scaling process something got lost and the value just wasn't there anymore.

@Kenny Dahill.  You are probably right.  But, if the management agreement grants the PM company the power of agency, would the management company still require the owner to provide final approval of a tenant?  Shouldn't the management company be able to approve the best tenant as the agent of the owner?  

@Mark S.  Are you still using Stessa?  What are the pros and cons you see with it after using it a couple months?

@Jeff Copeland Thanks for providing the article.  

For me, this statement is key, "The owner designated you as agent for the purpose (among others) of finding a tenant. Since he has delegated that authority to you, the owner has no appropriate purpose for the credit report."  This makes sense if the PM does not involve the owner in any aspect of the tenant search and leasing process, including final approval and signing the lease.  

My question - what if the PM requires the owner to provide final approval of the tenant before signing a new lease?  In this case, isn't the the PM refusing the authority to find a new tenant for the owner?  Shouldn't the owner have right to all information necessary to make a fully informed approval decision?

@Samuel Cardenas I have an LOC on three properties in an LLC. I use the LOC to pay cash for a property and rehab costs. For the properties I keep, I refinance with the same bank that issued the LOC. I developed a relationship with a community bank that has other customers like me and understands what we are doing. It probably helped that I've been an investor for many years prior to meeting with them. Where are you located?

@Theresa Nicoletto  This is an old thread, but I'm curious how you handled the evictions, Theresa.  Would you mind sharing?

@Scott Passman.  Hi Scott.  Welcome to BP.  I live in Batavia and have been investing in the Fox River Valley for about 15 years.  I'm glad to connect.