Are You Making One (or More) Of These HUGE Mistakes With The Management Of Your Rental Property?

I get calls all of the time from owners of rental property asking for help or wanting my opinion about what's going on with their Pensacola rental house and/or property manager.

Almost every time, the predicament that they are in is attributable to CRAPPY MANAGEMENT!

The owner, due to trying to save money, or not fully investigating the abilities of the property manager made a hiring mistake by taking on an inexperienced or a "not fully engaged" company to handle one of their most important financial assets.

Hey, I've been where you are. Before I started this company, I hired property managers to oversee my properties too. I've got to admit, money was tight, and I thought I NEEDED the cheapest company so that I could ensure my bills were covered. Well, I discovered that the cheap guys could (and did), end up being very expensive!

At first, you may think that property management is easy. After all, we just collect the rent, right? On occasion, admittedly, it can be that simple; however, I have never managed a house in which the management was that easy continuously.

Oh, back to the HUGE MISTAKES (Don't do these unless you have good reason):

1. Hiring a manager who is actively engaging in the buying and selling process (a real estate sales agent)!
 ---These folks may be good at marketing and selling homes, but they usually lack the expertise required when difficult tenant issues are encountered. Most of the time, what I see is that these individuals lack the desire to work at this tough assignment compared to real estate sales (a relatively enjoyable experience). Sales agents often don't have the best connections at getting maintenance service performed at the best prices. Management companies dedicated to saving their owners' money, can do so by making the effort to have an in-house maintenance program.
 ---I've even heard stories that some of these big, national real estate corporations may deliberately not provide much effort in filling vacancies so that they can convince the owner to let them sell the house and make sales commissions instead. This is, after all, how they make their money.

2. Paying their manager a leasing fee in addition to the management fee!
 ---Many managers and companies charge ½ of the first month's rent whenever they lease a rental. Think about this. This adds a whopping 40% to the fees. So if your manager is charging 10%, then you are now paying 14%! What are you getting for this? If the tenant loses their job (gee, is this stuff happening now?) and has to move or get evicted, then your manager gets to re-lease and earn an additional ½ month's rent-for failure!

3. Getting trapped into a contract!
 ---I can't count the number of times that someone has called me and told me that their manager won't let them out of a contract. If a management company can't make you happy, and then holds you hostage, FORCING you to pay them when they don't have any "skin in the game", then they aren't reputable.

4. Hiring the cheapest manager you interview.
 ---Hey, you may get what you pay for!

5. Hiring one of your tenants!
 ---Do they have the education, experience, and necessary licensing to perform what you are asking? Can you rely on them to navigate an eviction hearing if the situation arises (if the paperwork has an error, or procedure wasn't followed-you automatically lose!)? Can you legally pay them based on the performance of the property? If you can't, do they have the incentive to do the "hard" things for you on salary pay?

6. Hiring a company that doesn't know how to market!
 ---Another common phone call I get: "My house has been vacant for 4 months!" Then when I go to all of the sources out there where prospective tenants are hanging out, I can't even find the house advertisement. If I can't find the house, how can some house seeker on the street be expected to find your house? 90% of managers do nothing other than put a sign in the yard and list the property in the MLS. Few seekers, ever go to a Realtor, to look for a rental.

7. Hiring a manager that you haven't interviewed thoroughly to determine their project management skills!
 ---There's lot's of things to do. Your manager needs to be able to juggle all of them.

Call me and let me give you my reasons why OurGulfCoast Property Management is your best choice in managing your Pensacola rental property. We'll do all the work in turning over from your existing manager. I'll also tell you like it is, give you my opinions, and certainly won't tell you want I think you want to hear. I'd like to include all the info here, but I'm worried about giving you a letter longer than it already is!

This (property management) business is a serious, difficult job. You have a valuable asset and it needs to be managed as such.

Again, call me at 850-529-0429 or email me.

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