All Forum Posts by: Laura Stayton

I co-own a successful property management company in Delaware and we have many, many out of state investor clients.  Do your homework.  Find established companies and ask some questions.

1.  Are they familiar with the Landlord tenant code (and how it dictates what they're able to do and not do and how to do it)

2. Where did they get the lease they use?  Has a real estate attorney familiar with management in the state approved it?  So many posts on here about getting leases on line and asking people to share leases....makes me cringe.  What's good for one state will probably not be good for another.

3.  How do they screen tenants?  Who approves tenants?  Do they ask what the owners criteria is for credit, income etc.

4.  When do they send late letters?  Do they know how they have to send them and what verbiage needs to be included so if they have to file in court it will hold up?  (In Delaware we have to send all 5 day notices by certificate of mailing)

5.  How do they handle maintenance?  Do they have in house?  Many people think in house maintenance is a good thing.  It can be, but it's also a way for companies to upcharge maintenance costs so be careful.  Who handles emergency calls for maintenance 24 hours in case of leaks and such?  When is owner notified? Lots more to find out here....We have an approved list of vendors that we've cultivated over the years.

6.  Do they know how to file a case in JP Court for eviction?  Have they done it before? You have to have someone who knows how to evict.  Worst thing I hear is owners who have managed themselves and tenant is way behind and no idea what to do.

7. Do they have a website?  Do they have tenant and owner portals where tenants can pay their rent and report maintenance and owners can check?  Do they issue 1099's?  How does the owner get their money each month?

Just a few things to consider!!  A reputable company will have these answers immediately 

Quote from @Richard F.:

I would add, if you are having frequent turnover, there must be some underlying cause. Properly marketed, with well screened Tenants, a properly prepared rental unit should typically not turnover Tenants for several years. 

 Agree.  Or could be that the renewal rent is way too high.  We always recommend a smaller rent increase than market rent for good paying tenants in order to incentivize them to stay.  The turnover costs will wipe out profit and be tough to recoup if you're doing it every year

Quote from @Don Konipol:

I believe there are 3 kinds of property managers.  I have had good success with two kinds, and not so good or plain bad with the other. Without telling you which I list  the types below

1. Property management company with many properties

2. Individual hired as property manager for only your property or just a few properties

3. Property manager who’s a real estate broker and doing management to increase potential listings 

Which type have you or do you use?  For what type of property?  Or do you manage the property yourself?  Has your experience been good, bad, or mediocre?  

 Your title says 4 kinds of property managers where your post says 3....?

The misconception with many investors is that anyone with a real estate license is qualified to be a property manager.  The truth is that Property management companies require a great deal of industry training and experience.  Do your homework up front and see which ones have been around a long time and not "fly by night"  Check reviews (although many times disgruntled tenants will post bad reviews)

The reason you pay a property management company is to maximize profit, oversee tenant placement (including intensive screening), rents, maintenance, late letters, leases - how to give notices according to the landlord tenant code where your property (or properties) are located. 

We are completely transparent.  Owners and tenants both have access to online portals where they can see activity with the home at any time. They are emailed when a maintenance ticket comes in.

Quote from @Rodney Sums:

"Everything looks great"

If you're new to being a landlord and use property managers, even out of town, I share this story to encourage you to ALWAYS do your own move out inspection.

One of my PMs recently told me they inspected the property, took pics of the whole house, said "everything looked great", theyd be refunding the full deposit, and I should consider replacing the carpet.  I drove the 6 hrs to look myself and found:

Large holes in multiple doors, big stains in carpets, poor carpet cleaning not done professionally (likely from a Rug Dr., hence the buy new carpet comment).

Another PM for another home said "everything looked great". I drove the 3 hrs to look and found:

Evidence dogs resided at the property when the lease said no pets (I did some research and found pics of tenants with the dogs in the home), dirty and scratched drywall, red screws in the walls in several rooms, unchanged HVAC filters, carpet stain, and filthy appliances.

These aren't the only times and I tried to keep it short for your reading.   This happens even with really good property managers, and despite having them do 6 month inspections while occupied..  Always inspect yourself if you can, so you can make sure it comes out of the deposit not your pocket. 

 Most reputable property management companies have inspection apps that require them to go room by room and take picures of floors, walls, ceiling, windows etc and note existing conditions.  It takes a long time to do a thorough inspection.  At the end a report is generated and emailed to the owner.  Sounds like you need a better management company.

Unfortunately these things give good companies (like mine) a bad rep. But do your homework up front to make sure they are a good fit for what you need.

Ouch.  Do you have a management agreement?  I would suggest contacting an attorney but in the meantime start calling other management companies in the area.  Do your research - one with good reviews and established.  If you have an agreement and are bound by that agreement then the attorney will have to help see if it can be terminated for cause.  If you don't I would send notice immediately and follow up with attorney on responsibility of the agents in this.

So many many people assume all real estate agents can do property management and that just isn't the case.  You do have to be licensed in my state (Delaware) to manage other people's homes but there's so much to know to actually manage the home. 

Good luck.

Quote from @Adam Howerzyl:

Hi Laura - I did consider Buildium initially but ended up with Appfolio for our property management software. Do you use Buildium to call/text tenants as well? Or is there another software that you use to communicate with tenants? Thank you! 

 Yes it has a texting feature (they have to opt in) and can email them or even mail a letter to them on your behalf.  They're just very slow on customer support

Quote from @Karen Casey:

Hello, I am currently rehabbing a rental property and plan to manage it myself. Any suggestions for online property management sites I could use to help, run applications, credit, and collect rent? I appreciate your time and help.

You don't really need a software program for one property (my opinion) Just have tenant pay you directly.  We have in house screening through buildium but recommend worryfreetenant.com for you.  It's free for you (applicant pays app fee) and you get all the reports.  Some states don't allow tenant to pay app fees (not sure about yours)

Quote from @Taylor Wilson:

Curious how much others weigh credit history when it comes to your screening process? I recently pulled my own report using SmartMove and there were several inconsistencies when it came to the number of credit lines and history. I realize I have a common name but now I'm wondering about the accuracy of these reports and whether it's necessary to include as a part of my process. I'm already verifying employment/income and checking references.

VERY heavily rely on credit, criminal, eviction and screening reports to qualify tenants.  Our owners have established protocol for what they will accept.  Check rental references, verify income, etc as well but this is key.  With credit karma etc you can check your reports as often as you like and make sure any inaccuracies are removed.  

We love Buildium

Congratulations and good luck!  #1 thing I recommend is make sure you screen your tenants thoroughly!  If you don't know how there are free sites (worryfreetenant.com is one) Make sure you have a strong lease (can buy one here on bigger pockets for state you're in) and know the landlord tenant code THOROUGHLY where you are to know what you're required to do.