Does It Matter If Your Property Manager Personally Owns Rental Properties?

When assessing property managers, does it matter if they personally own rental properties?  This question is on the same line of thought as:

1.  Are sports coaches better suited to coach if they were former players?

2.  Is it preferable to have a nanny who is a mother care for your children?

3.  Is it better to have former addicts speak at rehab clinics than clean-cut drug counselors?

You may be saying, “Whoa, Brett… could you come up with a better example in #2 above?  What percentage of your property management blog readership has gone through the thought process of having nannies taking care of their children?”

Fair enough. 

So, in short, the question is whether actual experience matters.  I would argue that it does in most cases.

As a Charlotte property manager who owns personal rental properties, I have several things that concern me from painful experience.  These may not have the same resonance with a property manager who has never personally dealt with the repercussions (aka writing big checks to other people) for the following:

1.  Vandalism/Damage: Is the house in a good enough area that it can sit vacant without being broken into?  Do I need to let the police know and put “No Trespassing” signs up?  Can I let some of the neighbors I know around the house keep an eye on it?  Nothing is worse than fixing broken windows continually when trying to show it for new renters. 

2.  Utilities: Am I going to be stuck with big utility bills when the house is vacant?  I’ve received large water bills (from running toilets) and huge electric bills (from prospective tenants turning the air conditioning down to 40 degrees when visiting the property) from empty houses.  In the back of my mind I’m weighing whether I need to keep the utilities on (based on the time of the year) or checking the home during showings to make sure things are kosher.

3.  Tenant Wear & Tear: After screening a tenant and talking to their former landlords, it seems like he/she would be a good payer.  On the other hand, it seems like he/she is careless and the house is going to need major cleaning and touch-up after he/she moves out in a year or two; this is going to cost big bucks and be a headache then.  I know the short-term expediency of having a tenant move-in right away is going to turn into pain later after they move-out.  I’ve written painful checks for these repair bills before.  My stomach churns thinking about it.        

4.  On-Time Rental Payments: I’ve got mortgages to pay on the properties every month.  I need to get the funds on time and in full so I can pay the bank.  It’s not acceptable to not actively collect late rent; late fees must be enforced to dissuade late payments and tenants need to be encouraged to be on time.  Unpaid days do matter! 

These are just a few of the things that I think would be difficult to understand if a property manager doesn’t own rental properties.  It’s one thing to read what not to do in a property management handbook and another to have to clean up messes with your own money.  Experience is a very good teacher… and a harsh one.

As a learned man once said, “It’s not that bad to die in a video game.  Just don’t try it in real life.”  

Brett Furniss is the President & Owner of BDF Realty (Charlotte Residential Property Management), the trusted real estate advisor for Charlotte landlords.   BDF Realty utilizes their innovative Pod System for exceptional customer service in residential property management, home repairs, and home sales (including Rent-To-Sell) for single-family homes, condos, and town homes in the Charlotte-Metro Area.  Contact Us Today!