As Rule of Thumb - How Many Units Needed to Hire Larger Reputable PM Companies?

[Nir]

Hi All,

Question regarding cities like Barrie, Hamilton and others with population < 200,000, and their top 3 PM companies:

I understand that larger reputable PM companies will usually not manage just 1 duplex for example for an investor.
Each case/city/PM company is unique. However, as a rule of thumb, how many apartments should be enough for the
top 3 PM companies to agree to manage your property? Is 10-plex usually enough OR is it actually 25-plex?

Thanks,
Neil

 

[Thomas Beyer]

QUOTE (investmart @ Dec 5 2009, 08:38 PM) I understand that larger reputable PM companies will usually not manage just 1 duplex for example for an investor. Each case/city/PM company is unique. However, as a rule of thumb, how many apartments should be enough for the top 3 PM companies to agree to manage your property? ..
Every PM firm is different.

Some do single family houses. Some do 4 minimum. Some do 10, 12 or 20 plexes.

Some firms do 40 minimum. Some do 100+ only !

What is the "rule of thumb" you spend on a used car ?

 

[Nir]

Thanks Thomas. I guess you`re right. Was hoping mentioning city population less than 200K and top 3 PM companies is more specific than just saying used car.
In other words, was hoping people actually know the answer from personal experience in Hamilton or a similar size city. Cheers.

 

[housingrental]

Hi Neil

Thomas has provided a good response.

It depends.

Note that larger and reputable don`t always go hand in hand. There are many unsatisfied clients of larger pm companies.

Size and quality of service often have no co-relation. There are good and bad small and large companies.

Note also that some larger PM companies will take on portfolio`s as small as a single condo, whereas some smaller firms be interested in 12-plex and up only... each company is unique.

 

[Nir]

Thanks Adam, good points. Thinking long term though, I think you are expected to have less headaches dealing with large PM companies only.
put yourself in the shoes of an investor owning say 1000 units with no building smaller than 25-plex. there is a reason why he only deals with large PM companies - less headaches! many examples to show why. just one is stability and standardization ensure that level of service does not depend on ONE PERSON. As I`m sure you know many smaller firms depend on one person. of course you can not generalize - there are bad companies in all sizes. Therefore, used the word "EXPECTED to..".
Thoughts?

 

[housingrental]

OK
But if you own just the 25 plex are you often getting the same level of service from the company as the owner with a much larger portfolio?


QUOTE (investmart @ Dec 6 2009, 11:17 PM) Thanks Adam, good points. Thinking long term though, I think you are expected to have less headaches dealing with large PM companies only.
put yourself in the shoes of an investor owning say 1000 units with no building smaller than 25-plex. there is a reason why he only deals with large PM companies - less headaches! many examples to show why. just one is stability and standardization ensure that level of service does not depend on ONE PERSON. As I`m sure you know many smaller firms depend on one person. of course you can not generalize - there are bad companies in all sizes. Therefore, used the word "EXPECTED to..".
Thoughts?

 

[invst4profit]

Large companies tend to be distant from there customers leaving customer relations up to an employee. Employees change.
With a smaller company you may be dealing more directly with the owner, or at least less removed.

I work for a large company and find the customer contact employee is working only for a paycheck and the company generally is not proactive.
The smaller competition in my opinion provides better customer service and is more hands on with employee management. Employees of smaller companies also tend to have more loyalty to there employer in my opinion and tend to care more about the job they perform.

You still have to find a good one by trial and error.