Read on Twitter
Property Managers can ruin your Real Estate Investments. I've dealt with bad ones and great ones.
Learn from my mistakes: Here's my 5-step framework to find the GREAT ones:
1. Experience
2. Resources
3. Points of Contact
4. Processes & Reporting
5. Pricing
Let's dive in
Learn from my mistakes: Here's my 5-step framework to find the GREAT ones:
1. Experience
2. Resources
3. Points of Contact
4. Processes & Reporting
5. Pricing
Let's dive in
1 / Experience: you want to make sure that they have experience in managing your SPECIFIC type of property
Ask questions like:
- How many properties and units have you managed?
- How many Class X properties have you managed and currently manage?
...
Ask questions like:
- How many properties and units have you managed?
- How many Class X properties have you managed and currently manage?
...
- What is the average effective rents of each of those properties?
- How many properties have you done unit renovations?
- What is the average # of units you renovate on any property?
Just because it's a large PM company doesn't mean they have experience in YOUR type of property
- How many properties have you done unit renovations?
- What is the average # of units you renovate on any property?
Just because it's a large PM company doesn't mean they have experience in YOUR type of property
2/ Resources: If your PM company does not have a large enough staff at their corporate locations it can be tough to get what you need. They need to have a lot of people on their marketing & accounting departments so you'll get a team that can quickly reply to you any requests.
The questions you ask here may be:
- Can you Explain to me your org structure and departments?
- How many people do you have on each team?
- How many people will be overseeing my property specifically?
- how many people are on the construction team and their experience?
- Can you Explain to me your org structure and departments?
- How many people do you have on each team?
- How many people will be overseeing my property specifically?
- how many people are on the construction team and their experience?
3/ Points of Contact: You'll work w/ a few ppl consistently - The Regional, On-site PM, and construction manager (if doing renovations).
Questions here:
- How long have you been in PM?
- How long have you been doing this role?
- What is the current performance of your assets?
Questions here:
- How long have you been in PM?
- How long have you been doing this role?
- What is the current performance of your assets?
4/ Process & Reporting:
- What's an example of your weekly reporting?
- What's an example of monthly reports you provide?
- Do you have checklists that your lead maintenance uses to walk the property on a daily basis?
- What is your process for marketing?
- What's an example of your weekly reporting?
- What's an example of monthly reports you provide?
- Do you have checklists that your lead maintenance uses to walk the property on a daily basis?
- What is your process for marketing?
5/ Pricing:
- hat's your property management fee?
- hat's your estimated payroll for my property?
- What other fees do i get charged?
- If you're doing a construction project or renovations, what is your construction fee for managing my projects?
- hat's your property management fee?
- hat's your estimated payroll for my property?
- What other fees do i get charged?
- If you're doing a construction project or renovations, what is your construction fee for managing my projects?
You should download all these questions above because when you're interviewing PM companies you want to ask each one the same questions and document their answers.
Property management is all about the people and their processes. Both of these need to be high quality.
Property management is all about the people and their processes. Both of these need to be high quality.
We can find a deal where the numbers are great, negotiate strong terms, and have good capitalization.
But if we don't have the right people managing the property on a day-to-day basis then things can go sideways quickly. Don't ruin your great deals with poor management.
But if we don't have the right people managing the property on a day-to-day basis then things can go sideways quickly. Don't ruin your great deals with poor management.
