I made a HUGE mistake.
And I found out the hard way.
In 2016, I blindly hired a property management company without vetting them at all. Never really spoke with them, definitely didn’t interview them, barely met them. And that was the downfall of My First Property.
Fool me once...well, you know the saying.
So, prior to closing on My Second Property, I already had a new property management company lined up to take over. How? I got multiple property management company leads, interviewed them, and analyzed each one of them. This process of vetting IS CRITICAL to the health of your investment. Please, please, please, learn from my mistakes and hire the right company to manage your assets. Read all about my tips here:
“How to Hire a Property Manager”
My other strategy? I have two different companies managing my two properties at the same time (one to take over and manage the cleanup/sale of My First Property and one to manage My Second Property). This allows me to further vet each company and will aid in determining the best long-term fit for my management needs.
Now, on to the terms of the property management company taking over My Second Property:
-$895 New Lease Fee (i.e. I’ll pay $895 from my first month’s rent check)
-I'll pay 9% of monthly gross rent (i.e. if my monthly rent is $1,000 – they get $90)
-Professional listing photos
-Pre-Move In Checklist, walkthrough, videos, and pictures
-Rent directly pulled from Tenant’s checking account (reduces late rent!)
-Specific tenant screening criteria
-Great property management is critical to owning a cash-flowing property
-You must thoroughly vet the property management company you want to work with. Interview multiple companies and truly analyze each one.
-Be sure to compare the specific terms of each property management company. How much do they take in monthly fees? What do they charge for a maintenance request? It's very important to know all expenses.
Will this be the best property management company in the world? Maybe. Maybe not. But, I learned from my mistakes, did proper due diligence this time around, and interviewed multiple companies. Honestly, only time will tell if this is the best company for me. Let’s see how this plays out!