NA Home Rental/Property Management Companies

Discussion in 'Hangar Talk' started by Cpt_Kirk, Dec 13, 2016.

  1. Cpt_Kirk

    Cpt_Kirk En-Route

    Joined:
    Jan 20, 2014
    Messages:
    3,297
    Location:
    Georgia

    Display name:
    Ted Striker
    If all continues to go well, we'll be relocating out of state within a year. I'm looking into renting out our home. Does anyone here personally manage their properties or use a management company? Curious to hear about your experiences/opinions.

    Naturally, I'd like to run it myself but a management company might suit our needs initially. I don't believe I can effectively handle two ventures at once, being brand new to both.
     
  2. Tarheelpilot

    Tarheelpilot Final Approach PoA Supporter

    Joined:
    Dec 5, 2010
    Messages:
    5,659
    Location:
    North Carolina once again.

    Display name:
    Tarheelpilot
    I tried doing this once in my life. Moved 1200 miles away and rented the house through a property management company. I'll never do it again. My advice is unless you're close enough to manage it yourself then sell.
     
    TCABM likes this.
  3. catmandu

    catmandu Pattern Altitude PoA Supporter

    Joined:
    Aug 14, 2008
    Messages:
    1,548
    Location:
    Sierra Nevada

    Display name:
    Catmandu
    Management companies like to nickle and dime their way to profits. I learned this on my first venture ("Tenant reported front door difficult to open. Maintenance visited property and lubricated front door. Service call: $100). Put a paragraph in the lease that all repairs under some amount are paid by the tenant (the management company generally does not care where the nickles and dimes come from). Pay attention to how to terminate the agreement with both tenant and management, you don't want to get stuck in a bad situation should you decide to go a different route.
     
  4. RussR

    RussR En-Route

    Joined:
    Jan 12, 2011
    Messages:
    2,524
    Location:
    Oklahoma City, OK

    Display name:
    Russ
    We own three rental properties that are managed by a property manager, and all three are actually local to us. So we could manager them if we wanted. But our property manager is good and responsive, their maintenance people are cheap and quick, and it's just easier for us to not have to deal with the little things. We still get involved in the big things, like repairs and upgrades between tenants, but not getting called at 2AM for a broken dishwasher is worth it to us. It's just a function of hiring the right manager.
     
  5. Tflhndn

    Tflhndn Pre-takeoff checklist

    Joined:
    Apr 4, 2013
    Messages:
    223
    Location:
    Greensboro, NC

    Display name:
    Tflhndn
    Not all property management companies are the same.

    I acted as My own landlord for years (I was then a real estate sales agent). Then I started doing property management.

    Now I run my own management company.

    A good property management company is the best thing you can every get for yourself.

    A bad one will be the worst thing.

    Look for a company that looks at themselves as investment advisors. One that doesn't fee you to death and does not make money on repair (i.e. Does not mark them up, nor do their own)

    Usually a small to mid-sized company is best as they are more responsive to their clients and less boiler plate in how they handle things.
    PM if you want a longer convo.
     
  6. rpadula

    rpadula En-Route

    Joined:
    Mar 8, 2005
    Messages:
    4,709
    Location:
    Suwanee, GA

    Display name:
    PancakeBunny
    Market's hot here in Georgia. You should have no trouble selling it.
     
  7. Shawn

    Shawn En-Route

    Joined:
    May 6, 2013
    Messages:
    4,147
    Location:
    Santa Cruz, CA

    Display name:
    Shawn
    I use a property manager that is also a real estate office and the are hands down the best 10% I have ever spent in my life.

    I do not even know who is in there or how many have been through...nor care. They take care of EVERYTHING. They have approval to spend up to $250 in minor crap then have to call me for approval on anything bigger. They have a network of handymen and vendors that can get things done at half the price of a cold call from a phone book...otherwise they direct deposit the money in my account every month and the property is completely out of sight out of mind. I probably hear from them four times a year.

    While not every manager may be that good, I would never consider doing it any other way. Money well spent in my book.
     
  8. Cpt_Kirk

    Cpt_Kirk En-Route

    Joined:
    Jan 20, 2014
    Messages:
    3,297
    Location:
    Georgia

    Display name:
    Ted Striker
    Which would be an option if we didn't pay asking price with them eating all fees. We'll either come out neutral (not likely) or in the red. I just don't see us coming out on top. Moved in April of this year.

    I'm not expecting to make a fortune off of this house. We didn't buy it that way. I'd just like to see that we do make some money after all expenses are paid. Just running some quick number last night on what I think I could get vs. expenses (property management, taxes, insurances, repairs, etc), I'd come out $150-$300/month. Ballpark guess.

    I'd also like an investment/additional income. It seems hit or miss with the companies and my first worry was the nickle and dime games they'll play. I'll ask around.

    PM'd some.
     
  9. rpadula

    rpadula En-Route

    Joined:
    Mar 8, 2005
    Messages:
    4,709
    Location:
    Suwanee, GA

    Display name:
    PancakeBunny
    Some of the best investing advice I've ever heard: you don't have to make it back the same way you lost it.

    Good luck on whatever you decide.
     
  10. NealRomeoGolf

    NealRomeoGolf En-Route

    Joined:
    Apr 12, 2016
    Messages:
    3,049
    Location:
    Illinois

    Display name:
    NRG
    I manage my own but have a really good long term tenant. Just depends how hands on you want to be with it. I probably couldn't make money on mine if I had someone managing it (my house is not in a big town and very little rental value).
     
  11. Shawn

    Shawn En-Route

    Joined:
    May 6, 2013
    Messages:
    4,147
    Location:
    Santa Cruz, CA

    Display name:
    Shawn
    Yeah, all depends on the market. My folks who are retired have a few acres and had a double wide on their property up in Washington they rented out. Last tenant was great but the previous two were complete yahoos. When the last guy left they decided to just bulldoze the thing cuz the $500/month was not worth the hassle of dealing with the tenants themselves by time it was all said and done.
     
  12. Hank S

    Hank S En-Route

    Joined:
    Jul 3, 2013
    Messages:
    4,696
    Location:
    Eclectic, AL

    Display name:
    Hank
    I was a long distance landlord once, ~527 miles away. Listed the house for sale, only a few nibbles. Told the realtor "For Sale or Lease," used them for almost five years to manage it for the standard 10%. When the septic went out and we hooked up,to the sewer, they loaned me the money for free, and paid themselves back with the full rent until it was paid off.

    So it depends a lot on who is managing your property. Interview them now, while you are still local, and talk to some of their clients. Good luck!

    P.S.--I am now a local landlord.