All Forum Posts by: Kay Nemen

@Kay Nemen you're making typical rookie mistake of ASSUMING that all PMCs provide the same services and EXECUTE those services exactly the same way.

You're solely focusing on costs instead of HOW their PROCESSES will effectively manage your investment.

So, you'll get exactly what you pay for - good or bad.

@Kay Nemen I would recommend you reach out to @Kyle Mccaw with McCaw Property Management. https://mccawpropertymanagement.com/ They manage all my rentals in the Dallas/Ft. Worth area for many years. I worked for a PM in high school and college years. So I know what to look for in a good PM. I would recommend you stay away from small independent PM's that manage less than 200 doors. Their maintenance people aren't very good based on my personal experience. Also, franchise PM's there always seem to be a disconnect and long delays in responses to questions or concerns. McCaw is a local company. Kyle is the owner and fellow investor/broker. State of Texas requires PM's to have a real estate license. So the good one's will typically have their brokerage license by now because of their many years of experience. @Russell Brazil is absolutely correct on not focusing on just rates. McCaw does perform annual inspections with full reports with photos on all the rentals the manage. This has been very helpful to me in managing my rentals. Also, you are blind copied in on all work orders tenants submit. So you can stay on top of the PM with regards to maintenance. Not all PM's offer this. Also, each year at renewal of leases McCaw sends current rent comps with recommendations for lease renewal fees. Treat your long term rentals like a business and you will succeed. Any further questions please let me know. 

Hmm...I have great reviews and my owners are very happy.

Fees are only one part of the picture. You need to know what services they provide in exchange for those fees.

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. Try interviewing at least three managers.

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

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, 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, a 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. Consider 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. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest 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!

Like any service based business, you're going to encounter a variety of types of fee structures. You might find people that charge low rates, high rates, lots of fees, no fees.

I'd focus on competency. One of the things that sucks in real estate in general is the crappy companies usually charge the same as the good companies.

@Kay Nemen where is the quad? A large number of my current units are in Cleburne.

@Kay Nemen  I like Cleburne.  Decent area for the most part.  That gap in the floor concerns me.  Does it have foundation problems or is it really old?   Did you see it yourself or did you have someone else go look at it for you?

I invest in both AZ and TX among others. AZ by far is more predictable with costs. Are you considering short term rentals or long term rentals? What's you price point, that plays a role.