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It's about impossible for a PM company to get 5 star reviews. You commonly deal with people that don't have money. Owners that can't afford repairs, tenants that are one broken down car away from not being able to pay rent, etc.
The first time something goes wrong the PM gets blamed. Repairs are too slow, owner won't approve or can't afford repairs and they don't get done. Boom-tenant gives 1 star reviews. This sucks because the PM works for the owner and not the tenant so they must represent the owners interests.
Tenant is late or doesn't pay, tenant doesn't take care of the home, something breaks and the owner can't afford it and boom-owner gives a 1 star review.
PM are really almost a no win situation. We have a PM division so I see both sides. I get blamed for things I can't control frequently. The good news is that I think most PM companies only collect based on income. Ask your friends for recommendations or just call a few and talk the PM to find out. FYI-it is hard to find good property managers. You really want to make sure they place a good tenant in the home. That is the most important thing. Too many rental companies slap the first warm body they get in a home and then act surprised when that 480 credit score with 3 evictions on record doesn't pay and leaves the home trashed after the eviction.
I get what you're saying, Brandon. Lots of this is not the PM's fault. He's just overwhelmed with a barrage of laws and regulations at the Federal, State and City levels and each are more restrictive than the last. Here's an example:
Quote:
Small owner-occupied buildings. The FHA generally isn't applicable when a building has fewer than five apartments and one of them is occupied by the owner.
Sounds good, right? But this is Federal. It doesn't exist at the Cal and Los Angeles level and in fact it is even more restrictive. Now multiply that by about 10,000 rules and points of laws that exist on some levels but not on others or on all three. Nowadays a PM has to be a real estate attorney to avoid breaking the law.
Nowadays a PM has to be a real estate attorney to avoid breaking the law.
If you want some cheap entertainment go sit in on magistrates court during eviction hearings. It's real interesting on both sides, especially when the PM doesn't know what they are doing.
Yes. My mother has a life estate and the house will pass to me upon her death. It's about 15 minutes away. I cannot sell while she is alive. Otherwise if I sold I'd have roughly 38% in capital gains taxes. California combined with the Fed has the 2nd highest capital gains payout in the world.
So, your mother has gone into a nursing home? is that why you're renting the house out? Because if she has a life estate, she'd still be living there?
If that's the case, why not move her back in to her house with a CNA to whom you give free rent and board in exchange for services?
Cheaper than a nursing home?
So how is an outsider like myself supposed to decide? I mean I don't have any referrals. I've never used a PM before. Real estate agents i call for a referral never call back...only if i say i want to sell.
I'm far from a slumlord. I put roughly 60K into the house to fix it up. New roof, new paint, new carpet, new fixtures, upgrade the electrical, new wall AC's. It looks pretty much like a new house. I'd hate to have the wrong tenant go in and trash it after a year and then just have the PM sit on his hands while he collects his monthly fee while I put another 60K in to fix the damage that a month's deposit would never cover. You may be good but you're a diamond in the rough.
Are to able to go to the house location and actually visit and interview prospective property managers? If so, I would do that.
I would also consider using a workman or someone that you've worked with on the remodeling or a trusted neighbor to do the routine inspections and such locally, and simply be your own property manager re: rent collection and applications etc.
So how is an outsider like myself supposed to decide? I mean I don't have any referrals. I've never used a PM before. Real estate agents i call for a referral never call back...only if i say i want to sell.
I'm far from a slumlord. I put roughly 60K into the house to fix it up. New roof, new paint, new carpet, new fixtures, upgrade the electrical, new wall AC's. It looks pretty much like a new house. I'd hate to have the wrong tenant go in and trash it after a year and then just have the PM sit on his hands while he collects his monthly fee while I put another 60K in to fix the damage that a month's deposit would never cover. You may be good but you're a diamond in the rough.
Property Managers only collect their monthly fee if the property is rented that month. I have 2 houses that are vacant at the moment and am not paying my property manager for those 2. Until they are re-rented the property manager goes zero. But she will get a fee equal to a half month's rent for finding the new tenants.
Property Managers only collect their monthly fee if the property is rented that month. I have 2 houses that are vacant at the moment and am not paying my property manager for those 2. Until they are re-rented the property manager goes zero. But she will get a fee equal to a half month's rent for finding the new tenants.
That may be the way your contract is written. When I worked in property management, our contracts stated we were paid whether or not there was a tenant. We rented the units and found tenants. We also maintained the property such as mowing, plowing, maintenance, repairs, etc. There's more to being a property manager than just renting the unit.
At one time, I owned and managed myself 23 rentals, all single family homes. I got out of it because of the extra stress was not worth the cash I received off each home. Towards the end of my LL days, I did start shopping for PM and found a wide range of skills, rates, and temperaments. In the end, I just said sell them all and got rid of them.
If I did do it again, I would have a PM.
Part of their responsibilities is managing vacancies, so they need to be proactive at renting the property to minimize vacancy.
I would never sign a contract that paid the PM for a vacancy. The same applies to late fees, some PM in my area thought they were entitled to any late fees my tenants incurred.
That may be the way your contract is written. When I worked in property management, our contracts stated we were paid whether or not there was a tenant. We rented the units and found tenants. We also maintained the property such as mowing, plowing, maintenance, repairs, etc. There's more to being a property manager than just renting the unit.
There is a difference between paid and reimbursed. Were you paid when there was no tenant or were you simply reimbursed for the expenses?
We only collect pay on income but we are reimbursed expenses. Most PM in my market operate under this model.
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