Posted by Jimmy on May 07, 2006 at 08:06:50:
my CR’s are not licensed. and they are not employees. one is a GC. another is a plumber/handyman. another is an all-around construction type.
these guys cannot hold themselves out as property managers, because they are not licensed realtors. [obviously, the realtors got that into the law, which is absurd. but i digress]. But that does not mean that I can’t recruit them to do an array of services, which includes rent collection, evictions, etc.
Good Prop. Manager in San Antonio - Posted by Ace (LV)
Posted by Ace (LV) on May 05, 2006 at 09:58:23:
Does anyone know of a good Property Manager in San Antonio?
Best Ones Don’t Advertise - Posted by Jimmy
Posted by Jimmy on May 06, 2006 at 09:26:30:
I built a portfolio of Texas rentals when I lived in California. I had no choice but to have local managers. I could write a small book on the subject, but I’ll spare you. Here are a few things I have learned and/or I believe:
realtors make the worst managers (RM’s).
construction-types make the best managers (CM’s).
when you search for advertised management companies, you get 100% RM’s.
the CM’s have to be identified and recruited. But once you get the right one, the relationship can be wonderful.
4.5 You can teach a bright CM how to do leasing, evictions, tenant relations. But you cannot teach an RM how to fix stuff, or how to identify a drainage problem, or how not to think like a stinkin’ broker.
the CM knows he will get all the rehab/maintenance/repair work on your units. the CM will go out there and find you new opportunities. they deal with rehabs all the time. You want this. The CM wants this. and CM does not care of the deals are listed. the RM will NEVER find you a FSBO. these are often the best deals.
RM’s will want a deal something like this: (a) 10% of gross rents, (b) 50% of the 1st month’s rent at sign-up and at lease extension, (c) 100% of late fees, (d) extra fees to handle evictions, (e) an override on contractor work… The Cm will take what you offer, because they have their eye on the work they will get to do. I like to pay 7-8%, 50% of lates, $75 sign-up, nothing on extensions, no overrides or extras.
If any realtor whips out the Texas Ass’n of Realtors standard property management form, read it over, have a good laugh, and throw it in the trash. Totally one-sided and unfair.
The reality is that you will likely have to start with an RM. But keep your eyes open. Talk to the tradepeople who do work for you. When you find a bright young person with his or her head screwed on right, you may have a CM candidate.
Don’t use one. - Posted by JA
Posted by JA on May 06, 2006 at 06:50:52:
I have been through some tough situations with two prop managers in very distant cities. Not worht it. Even after phone interviews and personal interviews after my first prop manager experinece taught me a tough lesson, I thought I could do a better job by doing a lot of homework and interviewing to get a good prop manager.
Believe when people say not to use a prop manager.
The easy part is rent collection. That is about all they did.
Be leery.
Re: Best Ones Don’t Advertise - Posted by Natalie-VA
Posted by Natalie-VA on May 06, 2006 at 15:48:58:
Good post Jimmy. I’d like to add that I see a lot of houses managed by RMs that have below market rents. I always wonder if the owner knows this.
–Natalie
Re: Best Ones Don’t Advertise - Posted by The Frisco Kid
Posted by The Frisco Kid on May 06, 2006 at 11:37:14:
Jimmy
Are you saying you put them on as employees of your company, or are you saying in Texas someone managing single family homes for someone else doesn’t need a real estate license?