All Forum Posts by: Katie McKay

 Finding a PM is not difficult, finding a good one and one who does not have a one-sided contract is another. Make sure to have an attorney check indemnification language. For example, out of the last 5 agreements I read, 4 of them had it listed that I would indemnify and defend the property manager even if they did not follow abide by the laws of the land....

@Katie McKay

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Here are a couple of things to look for/ask:

1) Are your property managers licensed (not all states require a Real Estate License to manage property, however even in the ones that do not the PM may go the extra mile to acquire one).

2) Are your property managers members of NARMP or another professional organization?

3) What is your manager:property ratio?

4) How do you prefer to communicate with clients, and how often do you do so?

Good luck!

I prefer a local property management company over a national property manager. The response rate when it comes to customer service (for both you and the tenant) has been much stronger. Inquire with 4-5 local property management companies and after a few interactions, you will connect with 1 or 2. I try to build a relationship with them ASAP. Is there anything of value your can provide them? I find in any contractor/servicer engagement, adding value to the relationship goes a long way! Best of luck to you @Katie McKay.

I prefer a local property management company over a national property manager. The response rate when it comes to customer service (for both you and the tenant) has been much stronger. Inquire with 4-5 local property management companies and after a few interactions, you will connect with 1 or 2. I try to build a relationship with them ASAP. Is there anything of value your can provide them? I find in any contractor/servicer engagement, adding value to the relationship goes a long way! Best of luck to you @Katie McKay.