Originally Posted by cat man do
Property management has to date not been an issue either, but from various reads it sounds like the US property manager can be a bit of a scam artist pocketing rent and taking a large skim on maintenance, charging
considerably more for maintenance than what the actual cost of repair was.
From those who are actually doing it, do the above observations ring true?
Like many of my posts - this one kinda grew on it's accord
Ok, no experiance of the US - but some experiance of Property Management, both professionally and family
The fundamental problem with Property Managers is that they are not spending own money. and that a universal thing, not country specific.
Case in point, Father bought my brother a cottage (really a terraced 2 up and 2 down! - most of the development being apartments) on a sheltered housing development 6 years back (the attraction was a stable community and that although a freehold property all exterior work was covered by the 1/4ly service
charges - important in my brother's circumstances) - and was a new build......so both low maintanence and low property management.
Unfortunately me brother then went and died on us
...........so now rented out. Bought near top of the market
so now probably underwater by 10%, but family
never been a big one on selling property
so that not a problem - and generating "only" around 5% (pre-tax).....but the low maintanence and low management (low aggro) compensates for that - and no Property Manager basically pays the tax bill! (20% over here).........
......but (always a but!) recently the pressurised hot water system went partly kaput
....fortunately only affected the upstairs Shower
, so that bought a bit of time. Nowadays family relies on tradesmen to sort stuff like that - Plumbing
firm were good as gold in sending someone out quickly to make a temporary fix / have a looksee - but when my Father initially spoke to them they were talking about replacing the entire Hot and Cold water system! 2nd call Father mentioned he had been in the building game
and had other properties - the answer to that was a 3rd call from the boss, with the fix now being only a new pump (I suspect they thought, old bloke with a retirement
property = mug).
My point being that if a Property Manager was involved, the answer may well have been an entire new Hot and Cold Water System (Yikes! $$$$!) - even if a 2nd cheaper quote had been received.....and the Property Manager would not have been wrong - at least not in a way that could be sued for............at the end of the day, it's not their money being spent - I have been on the spending money end of things for other people via Property Managers and also direct to tradesmen - trust me that one is a bit (?
) more relaxed when not own money!.....just have to make sure decisions are defensible and that for important decisions the owners fingerprints are all over the decision.
IMO / IME there is no such thing as year in, year out zero management on any property that is owned - either managing the property itself or managing the people acting for you......not unless happy to be taken advantage of, whether being an absentee landlord or simply lacking knowledge (sooner or later someone will
IMO the happy medium is no ongoing Property Manager (if one is
needed to be on hand 24/7, then property not a good rental), and replaced by good tradesmen / firms.......and good agreements with Tenants (i.e. changing lightbulbs own responsibility!). The most important thing is good tennants.....and on that, a degree of luck is involved.
Of course I am talking about dealing with regular folks as tenants - not feeding off the poor, good money in that
but really only something that works well with hands on management - even if the "hands on" side of things is outsourced
.....and for a bit of thread drift!....that was something me and the missus were looking to get into in Bangkok, not a place / market for shrinking violets! - but only so many "regular" jobs that suited a woman whose main skill (and hobby!) was battering people for money
.......but if I tried that on my own nowadays I would likely be dead within a few months.......but that's another thread / forum