Managing Your Property Management

[JBagorio]

In the past 9 months I have handed off my properties to a property management company. It's been a good move so far having to no longer deal with tenant related tasks. This also leaves me more time to concentrate on what my real job is, to concentrate on education, monitoring and analysis of current portfolio, and looking for real estate opportunities out there.



I would like to open the discussion of the level of involvement I should de doing in terms of the management of the properties and the tenants. Please share your thoughts!

 

[ChrisDavies]

You have good timing Jason! I just wrote about that topic on my blog yesterday. I called it three reasons to put the phone down instead of calling your property manager.

If you hire a good property manager, you shouldn`t have to be involved. I talk on my blog about absolute limits. Upon reflection, if you have to exceed my limits, it might be time to look for a new PM, change your expectations, or re-examine your portfolio.

 

[selewis]

I would not (could not?) invest in rental property without a property manager. Long story, no reason to tell it here. It would be a familiar story to all. Almost got out of the investment property business after the first one if it wasn`t for a property manager that came along at just the right time and asked me to try that route first, before I sold it. Now I couldn`t imagine doing it any other way, and I also could no imagine NOT buying real estate over and over again!

I have a property manager with whom I chat once a week. He manages 300-400 units total, mine are only a small percentage of those. So I try to not bug him, but I like a once-a-week update, usually on specific questions I have, and anything new he knows about. We get along well. We laugh together a lot too.

For instance, he and I were standing on the porch of a property I was closing on the next day. We were trying to take down the private "for sale" sign on behalf of the owner (the only-for-one-more-day owner, that is). He had nailed this sign into one of the front porch posts quite definitively. My manager was on the porch railing, leaning way out over the front lawn (deeply snow-covered lawn), and looking like toppling or diving or leaping into the snow pile were his only three options, and very soon at that. I said to him, "If you`re thinking of falling and suing someone, today would be good, since I don`t own this property until tomorrow." He laughed and couldn`t stop laughing. Not sure why. I thought it was kind of funny, but not crazy funny.

But anyway... we hang out occasionally. We get along well. I try to use his time wisely. But a once per week conversation seems helpful to me and him (unless there is something major going on with one of my properties, like a disaster hole-punching fight by two tenants, leaving every wall of the unit with some remnant of the brawl showing).

I make sure I am clear as to my expectations. He has standard systems in place, but he is willing to tailor his approach to some degree for each landlord`s values. I have given him some expectations I have as to how certain types of situations should be handled and he has happily adjusted for me.

Anyway, don`t know if this actually said anything helpful, but there you go for now.

 

[ChrisDavies]

QUOTE (selewis @ Feb 28 2008, 10:34 PM) I have a property manager with whom I chat once a week. He manages 300-400 units total, mine are only a small percentage of those. So I try to not bug him, but I like a once-a-week update, usually on specific questions I have, and anything new he knows about. We get along well. We laugh together a lot too.

But anyway... we hang out occasionally. We get along well. I try to use his time wisely. But a once per week conversation seems helpful to me and him (unless there is something major going on with one of my properties, like a disaster hole-punching fight by two tenants, leaving every wall of the unit with some remnant of the brawl showing).

I make sure I am clear as to my expectations. He has standard systems in place, but he is willing to tailor his approach to some degree for each landlord`s values. I have given him some expectations I have as to how certain types of situations should be handled and he has happily adjusted for me.

Anyway, don`t know if this actually said anything helpful, but there you go for now.

Those are some great suggestions! (And a couple things I left out of my blog post) You sound like a good owner to work with. Being clear about your expectations and realistic about the amount of time your PM has to give to you are two of the most important things about establishing a good relationship.

 

[Varsity]

Having realised that my insane career leaves me little or no time to manage my current properties, and given that I`ve resolved to purchase a 4-6 unit block soon and that I have just about used up any existing goodwill from my friends and family when I am overseas, I`ve decided to take the plunge and delegate to a property management company. I I`d rather go with a large company rather than an individual, because I think the portfolio is/will be (keep growing) large enough to warrant it. I also like the legal/commercial comfort in dealing with a larger firm, taking advantage of their economies of scale and resources. Any thoughts and or tips are welcome, particularly in regard to people`s experiences/recommendations/warnings as to the likes of MetCap, Del, Larlyn Property Management, et cetera.

 

[BobHudson]

QUOTE (Varsity @ Mar 1 2008, 09:50 PM) Having realised that my insane career leaves me little or no time to manage my current properties, and given that I`ve resolved to purchase a 4-6 unit block soon and that I have just about used up any existing goodwill from my friends and family when I am overseas, I`ve decided to take the plunge and delegate to a property management company. I I`d rather go with a large company rather than an individual, because I think the portfolio is/will be (keep growing) large enough to warrant it. I also like the legal/commercial comfort in dealing with a larger firm, taking advantage of their economies of scale and resources. Any thoughts and or tips are welcome, particularly in regard to people`s experiences/recommendations/warnings as to the likes of MetCap, Del, Larlyn Property Management, et cetera.


Only one warning - ask up front about minimum dollars per month. When I bought my first 4 plex and was interviewing potential property managers, Larlyn made a very professional pitch to me. But because they had a minimum per month, I would have needed 20 units before I could get to their minimum. I had to go somewhere else.

 

[Varsity]

QUOTE (BobHudson @ Mar 2 2008, 08:38 AM) Only one warning - ask up front about minimum dollars per month. When I bought my first 4 plex and was interviewing potential property managers, Larlyn made a very professional pitch to me. But because they had a minimum per month, I would have needed 20 units before I could get to their minimum. I had to go somewhere else.


Noted, with thanks. Surely if it is a matter of getting the engagement or not, thy would be a bit flexile? Did you end up going with a large company in the end?

 

[betrina]

Chris- I read some of your blog posts about PMs. Thanks for the info and tips. I am in the situation where we own a building in a town where there are no property managers so we've hire some people to help us look after the place. My question:



What are your tips, suggestions, insights, and advice for training Property Managers to become the excellent Property Managers you talk about . (I did see the suggestion of sending them to a REIN Quickstart which we have offered to do for our newest team member.)



We also purchased REIN's Landlording Secrets to help with the training process. So I guess what I am looking for now is a job description for a Property Manager so everyone knows what is expected. Do you know where I could find something like a PM Job Description?

 

[brentdavies]

If you are training someone for real estate investing, then take an ACRE program. Learn all about getting the bank to say yes and making the deal. But I want my property management people to look after my property, not out looking for the next deal.



But if you want to train someone to manage property, go to the apartment associations such as the Edmonton Apartment Association or the Calgary Residential Rental Association. They both run a number of excellant courses on screening tenants, the Landlord Tenant Rules, and all kinds of associated topics.

Both association's purpose is to be a resource for Landlords, and make their business a success.



The Edmonton Apartment Association (EAA) is launching in the next few months a new on line learning service. The first course to be offered is understanding the Residential Tenancy Act of Alberta. As the president of the EAA, I am proud of the EAA to be one of the first Apartment Associations across Canada to develop a bed bug guide and now the on line learning.

 

[Vanessa]

Hi there!



I deal with LLR in Edmonton and I appreciate their expertise in such a niche market. I like that they take care of the small things, but let me know when something more extensive has gone on. They also give me the opportunity to decide how I want to handle a situation instead of just making a decision and sending me a bill.



They don't mind that I check in with them periodically to see how my properties are doing.



Vanessa

 

[JoeRagona]

Hey Jason,



You've already received a ton of great advice here. I'm going to come at this from an entrepreneurial angle.



I believe as a business owner you have to delegate the responsibilities that you already have and let the managers do their work the best way they know.



HOWEVER, what I have done, and what I help so many other real estate entrepreneurs do is figure out how they want their business to FIT their lives, not the other way around.



When I delegated my PM, I STILL have an active involvement with the tenants because I believe the relationship in ANY business is the most important.



Again, I come from a life of running businesses. Real Estate is just another business to me. The involvement I have is at the beginning, talking with them before they are accepted and throughout the tenancy IF there is any problems with rent that may be late or issues they are unhappy with regarding my PMs.



Everyone in my business is an 'employee' to me - including my tenants.



My intention for every tenant is to establish a solid relationship - and that means I must be involved to some degree. I visit them - sit and chat with them about general stuff and obviously send them cards and small gifts.



My tenants stay for years because I treat them well. So do my PMs.



But I established boundaries around how I want my business to run FIRST and then fit the components in...like a property manager.



I think a lot of investors miss this crucial point: your business should SERVE your lifestyle...you should NOT have to change it to run your business...



I know I'm probably off on a tangent here (that's just how I think) but it's very important to me to help spread the message that you don't have to sacrifice to get what you want.



Back to your PMs, whatever WORKS for your business is what you should be doing. If you have changed things recently, then you should measure the changes...things will improve, decrease or stay the same. But if you don't measure, you will never be able to scale your business to the level you want.

 

[anthony63]

Hi Bob,



Did you find a good property manager? I purchased a 10 unit building in Hamilton last year and I'm currently in the process of finding a good PM in the area. Please advise if you know of a good one. Thanks



Anthony Piselli

 

[Guy1981]

Hi JBAGORIO,



I'm doing a research on rental property management, and I came by your post.

Is there anything you wished the company managing your rentals was offering beside the usual services: rent collection, finding tenants`? And is it common to all companies in this business?





Cheers



Guy

 

[Guy1981]

Hi SELEWIS



I am doing a research on rental property management companies and I came by your post. Is there anything that you wished the company managing your rental property was offering that it is not. Something besides the usual services: rent collection, finding tenants`

And is it common to all companies in this business?



Cheers



Guy

 

[Guy1981]

Hi Varsity



I am doing a research on rental property management services and i came across your post.

I was wondering if you have a found a company to manage your rental, and if there is anything that you feel should be in the service offering that you can't find anywhere else. (something besides the usual rent collection, finding tenants`)



Cheers



Guy

 

[Guy1981]

Hi Bob



Is there anything you think is missing in the current offering of these companies managing your rental properties (something other than the usual services:rent collection and finding tenants)

I am doing a research on the rental property management services



Cheers



Guy

 

[Guy1981]

Hi Vanessa



Is there anything missing in the current service offering? Something you'd like them to offer but they don't. (something other than the usual rent collection or finding tenants) I am doing a research on the rental property management businesses and trying to get inputs from investors.



Cheers



Guy

 

[JBagorio]

[quote user=Guy1981]Hi JBAGORIO,



I'm doing a research on rental property management, and I came by your post.

Is there anything you wished the company managing your rentals was offering beside the usual services: rent collection, finding tenants`? And is it common to all companies in this business?





Cheers



Guy





My apologies for the late response! This thread I have posted is 6 years old and almost forgotten! Wow it is unbelievable how time flies! I have already gone through couple of Property Managers since then. Just to get back to your question I would say no, I don`t really have anything else required besides from the usual. All I do require is to be consistent on theirs service and keep me in the loop of anything about my property and other opportunities they have on their radar.