Property Management Companies Only Service High Rent Properties
Christina' question: Apparently she is interested in buying her first rental property, and she says she is beginning her search, and she was asking for some tips on hiring property management company.
I do have one word of warning for you. The better property management companies will not take poor quality properties. Our company, we actually turned down 83% of all those owners that contact us and request service from us. We don't take any bent owners any predatorial behavior. If you were to make any kind of indication that you want to steal security deposit from the tenants to pay for a kitchen renovation, anything like that. But we also won't take bad quality properties. And I think the majority of companies will actually be the same way.
The reason why I'm giving you this warning is I feel like a lot of property owners get excited to make their first purchase and they're unaware that they're not going to be able to find a quality property management company to manage it for them, and they kind of get stuck.
I do feel bad for the folks who contact me, but there's nothing we can actually do for them. Then they end up either having to manage the property themselves and hopefully they're equipped to do so. And often they're not, often, they're not even local folks, they're out state investors. Or they'll end up getting stuck with really bad property management company, which can be devastating in itself. So my one word of warning is make sure property management companies will actually be willing to manage in that neighborhood, that they'll actually be willing to manage at that price point of the property that you're investing. Good luck!!!
