Author Topic: N00b question about property management companies  (Read 950 times)

RedmondStash

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N00b question about property management companies
« on: April 16, 2017, 10:54:40 AM »
We've never wanted to be landlords, but when the time comes for us to move, we may rent out our current house (rather than sell it) to add a new income stream; diversity of income seems like a good thing.

Because I don't want to handle the details personally, I'm researching property management companies. How do you go about finding a good one, one that takes good care of tenants' needs and also provides good service to owners? What can you expect from a property management company?

OthalaFehu

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Re: N00b question about property management companies
« Reply #1 on: April 16, 2017, 11:01:44 AM »
The short answer you can expect them to take 10% :)

If you live in a small market there are a limited amount of options, in a big market there may be many to choose from.

If you have never checked out 'biggerpockets' you should, it covers the whole world of landlording, and would cover this topic better than I ever could in a reply post.

Good Luck!

Scortius

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Re: N00b question about property management companies
« Reply #2 on: April 17, 2017, 10:21:39 AM »
Ours also takes 10% of gross rents received.

While you should feel some responsibility to your tenants, make sure that you pick a company that will take care of you.  I was all fine and dandy managing our own place until some of my tenants decided to stop paying rent for various reasons.  It escalated very quickly to the point where I felt in over my head.  The management company simply accepted my keys and took care it.  The owner of the management company knew what she was doing, and that was clear when we met to talk about doing business together.  So, first and foremost, make sure you get a company/person who knows how to handle bad tenants.

The next thing to examine is their network of service operators.  My management company has their own landscaping, maintenance, and repair people.  They keep the property in good shape, and if something goes wrong it's repaired promptly and professionally.  I receive a copy of all invoices and receipts for work done at the end of each month.

Finally, a good management company should be able to customize their response to your desires.  If you want to give your tenants the ability to request quality of life repairs or upgrades, your management company should also be able to send one of their people over and do what is requested.  When I first started with my management company, I would get frequent emails asking for permission to do this or that.  Eventually I just told them to go ahead without my knowledge unless it was a serious big-ticket item.  Now I just scan the monthly statements, and I get an email once a year or so about a water heater or furnace they have to replace.

RedmondStash

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Re: N00b question about property management companies
« Reply #3 on: April 17, 2017, 07:22:18 PM »
Thanks, folks. Good info.

They keep the property in good shape, and if something goes wrong it's repaired promptly and professionally.  I receive a copy of all invoices and receipts for work done at the end of each month.

This is what I mean, taking good care of the property, partly for the tenants' quality of life. But any tenant who doesn't pay, causes trouble, or is in other ways a bad tenant is not someone I'd want to keep around. I would definitely want a property management company to be on it and take care of business.

I just remember what it's like to be a tenant, and to worry about landlords being upset or capricious. I'd want good tenants to feel comfortable; I was always a good tenant myself.