@Terrell Garren i'll back up @Kevin M. 's comment:
Also a good PM will be better than you at filling vacancies, evaluating tenants, regulatory compliance, and handiwork. **note this is only true for a GOOD PM!!**
Terrell GOOD PM's don't manage properties part-time like you or other self-managed owners, we do it EVERY SINGLE DAY for multiple properties, multiple tenants and multiple owners... it's worth repeating... EVERY SINGLE DAY! I'm not just saying GOOD PM's are better at all the things that Terrell mentioned just for the heck of it and just leaving it at that... no, that would be way too easy... let's break it down:
Filling vacancies: Do have the ability to syndicate your listing to multiple sites (no... I'm not talking about cozy, I'm talking about a serious syndication to EVERYWHERE)? maybe you do or maybe you pay for that or maybe you don't... but do you also then have the 'authority' to bump old listings off of the property? do you have the ability to also list it on the MLS in addition to the above? Do you have an active tenant pool from other active properties which you can now present your listing to? Do you have a streamlined process that will make it easy for an applicant to view and apply for the property? How about a streamlined process to collect the security deposit? Do you have a process to keep an applicant from walking away on you?
Evaluating tenants: Are you able to pull the tenant's credit? - no I'm not talking about the watered down version you get from cozy or transunion for free - a true up to date credit report... unless you have a secure facility with different levels of security and have passed the bureau's vendor's onsite inspection... I'd guess probably not. Are you able to get direct income verification directly from applicants bank accounts? Do you have different levels of a screening process or are you just running a report and trying to call phone numbers? And about those phone numbers that you're calling to 'verify' the application, do you have a release in order to be able to do so? Worse.. are you going with your 'gut'? if you're looking at things like the applicant's 'messy' car or how 'well behaved' their kids are at a showing... then yeah, that's your gut. By the way how often do you evaluate applicants?
Regulatory compliance: When is the last time you have had proper training in your state's tenant/landlord laws and procedures? How about Fair Housing? American with disabilities act? Registered sex offender laws? Have you attended any evictions lately? or maybe read up on the latest rulings? Back to those watered down reports from open sources... how are you storing those? Do you know how long you have to store them for? how about which ones you need to discard securely (and don't worry...yeah it applies to even the ones you get through opensource)? Are you thinking that's not a worry? Well... it will be when an applicant goes through id theft and lists you as a source that collected sensitive information and question about your process will be asked and yeah it applies to even a self-manager. How are you listing your property? Is it within walking distance to the nearby lake? or maybe it's family friendly? or maybe your okay with pets on a case by case? --- all fair housing violations by the way. By the way did you include fire extinguishers in that last duplex you rented out? or maybe you don't worry too much about it because you have a die-hard lease that ensures the tenants don't smoke on the property? --- but does it fall short at protecting you too? did you just inadvertently guarantee a smoke free environment in your lease to all the other tenants on the property and opened yourself up to a lawsuit when you can't enforce it? ... best to check up on that.
Handiwork: Are you handy or do you like to work on your rental yourself? It makes sense, its fast and 'free' heck it's your own property and you're a property owner why not? It is allowed, but wait... what happens when the tenant gets hurt on that new ceiling fan you just installed but came loose? Are you licensed for electrical work? I know... you're a 'property owner' and can do that, but what happens when the judge tells you that when you have YOUR family in the house, YOU can do repair and do whatever you want but when you have OTHER FAMILIES which you are now responsible for, you need to meet a different standard? A commercial standard, you are a landlord running a 'business' -- probably why it's important to circle back to: how many tenant/landlord dispute cases have you reviewed lately? Maybe, you know this and are hiring repairs and maintenance out but, are you screening every vendor's insurance and licenses first? and by the way do you have a trusted list of vendors for EVERYTHING (hvac techs, plumbers, electricians, painters, cleaners, etc. etc. etc.) which are vetted, tried and true and place you on priority because of the volume of your portfolio? And of-course... it doesn't happen often, but what happens when your tenant calls you at 2 a.m. or on a Sunday morning about an overflowing toilet, a drilled through pipe, no heat during winter... are you available? Not for 'some of them' and 'sometimes' but for ALL of them ALL THE TIME?
Some more for you... Do you have the ability to pull funds directly from a tenant's bank account for missed rent? Or maybe a streamlined lease that is compliant and enforceable? no... not the one from legal zoom and no not the one you have 'fortified' over the years to the point that it's so lopsided that a judge will have field day and just through it out. How about an attorney on retainer that does nothing but litigate tenant/landlord issues and gives you priority? no?
Don't worry, I have many more... these are just a fraction of issues that GOOD PM's will bring to the table. No, I can't vouch for EVERY PM out there but like Terrall reinforced... GOOD PM's WILL manage your property better, safer and more efficiently than most property owners out there.
Thanks so much for your thorough response. I definitely don't question the work involved in managing properties. I wish I was able to locate a PM that is as thorough as you are. The one I have is a smaller operation and came highly recommended -- and I recognize that I am only bringing 1 property to the table - but the attention to detail and communication is definitely lacking. I need to do some more research and see if there might be a better fit for a PM. I don't expect my hand to be held all the time -- but some of the repair requests have not been attended to in a timely manner and the communication seems a bit off. Quick example -- I made it clear that I was a newer investor and looking for guidance - I asked how the tenant renewal process went. He stated he would reach out to me 60 days prior to see what I wanted to do (raise rent etc) and then try to get an answer from the tenant at 30 days prior. I reached out 45 days prior and asked what the situation was. A day later he responded that the tenant is not renewing. Given what he initially communicated, I was a tad put off by having to be the one to proactively get the answer. Again, not huge -- just wish the follow through was there. The same has occurred with repairs. I have been told a technician would be sent out. A week later I would reach out to confirm the work was done and the response I would receive was: still trying to get it scheduled or due to the weather my repairman hasn't made it out yet... Seems like those things should be communicated....
