September 11, 2024 • 34 mins
Ever wondered what makes a top-notch property manager? In our latest episode of Money Matters, Grace Nabasabala spills the beans on her journey from necessity to mastery in the world of property management. From handling those midnight maintenance crises to screening tenants like a pro, Grace shares her wealth of experience and the intricacies of a role that goes far beyond mere rent collection. Whether you're a seasoned real estate investor or just stepping into the game, Grace's insights will arm you with the knowledge to navigate the complexities of property management successfully.
Considering hiring a property manager but confused about the fee structures and screening criteria? Unlock the secrets behind the costs and the importance of maintaining clear communication with your property manager. Grace breaks down why these managers charge for maintenance and the significance of securing quality contractors. She also discusses the critical role of certifications to guard against legal pitfalls and outlines the standard tenant criteria, ensuring you stay compliant with fair housing laws. Stay informed and protect your investment with the strategic advice offered in this episode.
Choosing the right property management company can make or break your real estate venture. Through engaging discussions, we explore how to set realistic expectations and avoid common misconceptions. Grace and I delve into the importance of effective communication and the nuances behind different fee rates based on the level of involvement required. We also provide practical tips on how to research and verify potential property managers to avoid scams. For additional resources, don't forget to check out websites like neighborsfcu.org. Tune in for a treasure trove of practical advice and expert tips that will elevate your real estate management game.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Welcome to Money Matters, the podcast that
focuses on how to use the moneyyou have, make the money you
need and save the money you want.
Now here is your host, ms KimChapman.
Welcome to another edition ofMoney Matters.
I am your host, kim Chapman.
Do you have any property thatyou want to put up for rent?
But you're worried about thehassle.
(00:22):
You know what does that mean.
Do I have to worry about callsat 3 am in the morning because
the toilet won't flush?
Well, today we're going to betackling an essential topic for
real estate investors hiring aproperty manager.
From screening candidates tounderstanding their role, we're
going to cover everything thatyou need to know so you can go
ahead and make an informeddecision, if that's going to be
(00:43):
right for you.
So joining me today is Ms GraceNavasalo.
Hi, grace, and thank you somuch for joining me today.
Hi, ms Kim.
Thank you so much for having mewhen I found out that you did
property management, this isdefinitely a topic that I wanted
to cover.
I know a lot of our listenersare interested because, again,
we want to invest in property,we want to have rental property,
(01:07):
and it just seems simple on theforefront, but when you really
do a deep dive.
I've talked to people that doit, and sometimes it can be a
headache and having people callyou trying to find renters, and
so property management seemslike that's the solution.
So I want to dive in and findout what that's about.
But can you share with us howdid you get started in property
(01:27):
management industry and whatinspired you to even pursue this
path?
Speaker 2 (01:33):
Oh, thank you so much for that wonderful question,
kim.
I started in 2019.
And the reason I startedproperty management was out of
necessity, because at the time,I had a rental and I didn't have
a property manager.
And also I did a lot ofresearch and did a lot of
networking with other investorsand all I had were negatives
(01:56):
about property managers.
Therefore, I was forced into it.
I had to learn everything Ineeded to learn about property
management and luckily, I gotthe best tenants initially,
because I didn't learneverything I needed to learn
about property management andluckily, I got the best tenants
initially, because I didn't knowwhat I was doing.
I was learning on the go andthrough that experience, I
continued learning as much as Icould.
(02:16):
Online platforms.
I would get into othernetworking events and learn
about property management andalso ask other investors what
they were facing, such that Ididn't have to deal with the
same thing and how they werehandling issues.
And also I became a member ofthe National Association of
Realtors in 2021, 2022, wherebyI'm able to learn more
(02:43):
information about propertymanagement, about real estate in
general, as a realtor withGoodwill Realty, and also I'm
also with NREA, new Orleans RealEstate Investment Association
Group so I'm a member of that aswell where we meet every other
Thursday and we learn so muchinformation about property
(03:04):
management, real estate ingeneral, all the legalities of
real estate, and that has helpedme on Facebook groups, being a
part of a lot of circles whichcan help you, and these Facebook
groups are in different states,different countries, and the
funniest thing I learned was weface similar issues and so we
(03:25):
help each other in that way socan you walk us through what the
typical responsibilities of aproperty manager or property
management company are?
they are several and complex.
Initially I thought it was justcollecting a check from a
tenant.
Speaker 1 (03:40):
I think a lot of investors think that when they
get into the business and that'swhy I really wanted to have
this conversation, because it'smore than just, you know, having
a property, having a tenant andexpecting a check every first
of the month so help usunderstand a little bit better
what goes into propertymanagement.
Speaker 2 (03:57):
It is a lot from finding the tenant and also
screening that particular tenant, because not everybody who is
going to reach out to you willbe the best tenant.
So screening all thoseprospective tenants and through
the screening process you getthe most qualified one according
to your criteria.
Once they become your tenant,you make sure they do the
(04:20):
walkthrough inspection and alsothey have to abide with the
lease.
So enforcing the leasethroughout the tenancy is a big
thing which most times we forget.
But you have to keep up withthe lease and remind the tenants
to do the same Through that,also making sure they make
timely payments If they arebehind on rents, making sure
you're reaching out and if youhave to initiate an eviction,
(04:41):
that's a big thing becausesometimes you might deal with
some people who might not beable to keep up with the rents.
So going through with eviction,that's another thing.
Another thing would also be anymaintenance issues.
So that's been one of thebiggest things that I've dealt
with, because things break downat any time.
(05:02):
You just never know.
4 am, like you mentioned 3 amcalls.
Speaker 1 (05:06):
That would be a nightmare.
That's what I always thinkabout when I think of oh God you
know, do I want to really rentsome of this property?
Do I want somebody calling mefor a plumbing issue?
I don't want to deal with myown plumbing issue.
Speaker 2 (05:17):
Exactly.
And the funniest thing is, forsome reason I've never really
dealt with any emergencies lateat night in my own house.
But if I tell you how manytenants have called me at three
or four in the morning, it'sseveral.
Sometimes it's even a littlething.
You see, it is an emergency tothem.
(05:38):
However, it might not be anemergency to you.
So training tenants, tellingthem what is an emergency and
what isn't an emergency, and incases where it's like a fire,
water hazard, like seriousemergencies, of course they have
to call you in those wee hoursin the morning.
However, if you're talkingabout theft, you need to call
(05:58):
911.
Don't call me.
So training tenants is a bigthing that we do.
And also making sure that theproperties are actually covered
that's a big thing, becausesometimes we forget that the
houses need to stay covered withinsurance.
And making sure when somethingis coming around say, for
(06:19):
example, there's a weatherchange Like recently we did have
like some storms that happenedmaking sure that even before
that you prepare the tenants,you see, are they evacuating?
You need to keep up with that.
If they are, who's securing theproperty?
And then, after the stormpasses, then are you shaking on
the properties to make sure thatnothing was damaged and
(06:41):
reaching out to the tenants.
So it's a few things here andthere and also risk risk
mitigation, because so manytimes if we don't do the right
thing, sometimes people might betriggered to do what?
To reach out to their legalteam to make sure that they can
file a claim against you.
So making sure that at leastit's less in the business
(07:03):
because you rather communicateand have a good relationship
with those tenants such thatthey will not bring a suit
against you and your company.
Speaker 1 (07:11):
Sounds like there's a lot of education involved and I
know, of course, one of thebenefits is definitely the fact
that you do the screening interms of finding those tenants.
But as an investor or aproperty owner, how do I choose
a good property manager who'sgoing to help me screen?
You know what are the thingsthat I should look for in a
property manager or a propertymanagement company.
Speaker 2 (07:32):
That's a good question.
I would recommend researchingand also finding out from other
investors in the area who theyrecommend and through that that
can give you a good idea who tomaybe who to work with, and also
have something in writing.
Don't just go with whoever theygave you and they have this
(07:52):
whole agreement but you don'teven have know exactly what's,
what are the expectations ofthat property management service
.
You need to have that inwriting.
Know what are the feestructures, because there are
different fees which initially Ididn't know and I didn't charge
for, because I have a couple ofclients that I manage their
(08:12):
properties but I never chargethem all these fees because I
was just trying to be nice andhelpful to them.
However, I realized maintenanceis a big fee that you need to
make sure that you're followingup with those.
Maintenance that takes your time, that takes your money, and
then also securing all thosecontractors.
You see, because that's whysometimes property management
(08:35):
companies make an upcharge forsuch services, because you have
to follow up and make sure thatthose people did the work right,
to follow up and make sure thatthose people did their work
right.
And other fees whereby we aresecuring our tenant.
That's a fee the monthlymaintenance.
That's a fee whereby thehomeowner or the landlord has
(08:56):
their peace of mind, but for youyour phone keeps ringing, you
see, so that's the fee that youhave to compensate the property
manager for, and other littlethings such as risk mitigation,
whereby if I'm having thisrelationship with this tenant,
is it really preventing allthese suits.
You see, so making sure thatthose property managers pretty
(09:17):
much have the experience andexpertise in those different
areas.
Communication is a big thing.
A lot of people don't reallylike communicating, but I really
like to communicate and that'swhy I'm with Toastmasters,
because I wanted to get betterin my communication and make
sure that our email, text, calland whereby everybody is on the
(09:39):
same page, and so communicationis important and also making
sure that they are complyingwith your needs and goals.
Speaker 1 (09:47):
So in your introduction you talked about a
lot of different organizationsyou belong to.
So for a property managementcompany or just an individual,
are there minimum credentials orcertifications that are
required that I should look foras an investor?
Speaker 2 (10:02):
As an investor.
Actually, in Louisiana, you'renot required to have any
certifications and credentials.
However, the more credentialsyou have, the better.
No-transcript.
I remember before I became arealtor, I thought maybe I
didn't need to become a realtor.
(10:23):
However, when I was goingthrough the certification to
become a realtor and thelicensing, I learned so much and
all the things that I didn'tthink were important.
Right now I look at it as thisis important.
You see, I could have beenliable for something if I didn't
know it, and just because youdon't know something doesn't
mean that you can't be found atfault, you see.
(10:46):
So a lot of people, especiallymom and pop landlords, do some
things without knowing thatactually that's violation of the
law.
So I recommend learning as muchas possible and also having the
certifications needed, and evenif they might not be required,
I really encourage them to goahead and get those
certifications.
At least you learn somethingwhereby you're protecting
(11:08):
yourself and also you're doingright by yourself and your
clients.
Speaker 1 (11:11):
Okay.
How do property managers handlethe tenant screening and
leasing process?
Speaker 2 (11:17):
So it's done differently.
Different companies dodifferent things, but I'll say
what we do as Giza Homes.
We have an online platformthrough apartmentscom where for
particularly with the screeningwith the listing is different.
Listed through Apartmentscom,the tenant or prospective tenant
(11:44):
can go on that particularproperty and put in an
application and through theapplication, they do a credit
screening and a background checkand also they can upload the
information on there, such astheir W-2s and their ID, whereby
, as soon as they get approved,we would review that information
(12:06):
and let them know if they'reaccepted or they're not,
depending on what our criteriais.
So most times we show them theproperty and then they get to
apply online to fill out thatapplication and submit the forms
that are necessary, and then weget to tell them if it's a goal
(12:27):
or not.
Speaker 1 (12:28):
So as a property manager, or really as the
property owner, can I specify,or, I guess, how close of a line
is it for me to be able to say,ok, I want this type of tenant
or that type of tenant, withoutbeing discriminatory?
Can I say I only want a family,nobody single.
You know what kind of thingscan I specify again without
(12:52):
discriminating somebody?
Speaker 2 (12:54):
So that is a big violation because that's a fair
housing violation.
I recently had a tenant who waslike I don't want a family.
And I was like if you're notliving in a property, you really
cannot discriminate.
Or if it's not a neighborhoodwhich is 55 plus older, you
can't really discriminate, yousee, because that's an age
(13:15):
violation.
So there are so many violations, especially for fair housing,
such as race, color, age, sexyou see familiar, origin, things
like that.
So we try to make sure that weencourage and educate our
clients to have a standardwhereby the way we enforce it is
(13:37):
like we have this criteriawhereby if this particular
person meets that criteria, itdoesn't matter if they have a
family, if they're single, wedon't even have to ask them do
they have kids?
That's a discrimination.
So we have to ask them how manypeople believe in the household
.
So whereby we are coveringourselves, not thinking OK, what
(13:58):
ages are these?
Not thinking, okay, what agesare these.
And you see, so at least we arecovering ourselves and we are
letting our clients know thatplease make sure that we have
this standard and we are notdiscriminating.
Speaker 1 (14:11):
And so what are the typical things that go with that
standard?
Speaker 2 (14:14):
The typical things would be we I'll say maybe one
of the ideal clients would havesome kind of credit, Okay, and
kind of credit would be like at580.
You see, about 580, they wouldhave an income, An income.
And if they don't have aparticular income, if they have,
say, for example, they're avoucher client and they're
(14:35):
getting some source of income,because then we have to show
that we are able to pay for thatrent, and normally we have it
as two times, two and a half,the amount of that month's rent.
Okay, yes.
And the other thing would bethere's background.
You see, what is actually onthat background Is that
(14:59):
background?
Is it?
Does it have like sex offender?
Does it have like somebodymaybe committed a very, I don't
know?
like something really violent,but it has to depend on exactly
what crime you see.
You see, was it a firearm?
And then if it was a firearm,how long ago?
And things like that how longago, whereby we have to protect
(15:22):
ourselves and also the people wesend into the property.
And then, for whatever theycome up with, if we approve them
, that's when we'll put it inaddendum that we do not accept
such and such Because we aregoing back to what we accepted.
But if they did such and such,yes, and then the other thing
(15:43):
would be evictions.
We try not to approve anybodywho had an eviction in five
years or less, because then wefeel like the way you treat it,
it's a higher risk.
Exactly the way you treated thatprevious person is the same way
you might be able to treat us,and we try to avoid that.
And the other thing would bescreening for pets.
Do you have pets?
Speaker 1 (16:03):
we ask that too and can you list that as a standard,
that you don't want a residentor a tenant with pets?
Speaker 2 (16:11):
yes, because then sometimes they're aggressive
breeds.
If they're aggressive breeds,our insurance won't cover, and
so that restricts us taking thatparticular tenant.
Speaker 1 (16:21):
That's a very good point.
Speaker 2 (16:22):
Yeah, and also the weight limit, you see, because
recently I got a tenant who wasgreat on paper, but they told me
their dog weighed 110 poundsand I had to look back and look
at that criteria.
It says 50 to 60 pounds max, soI have to go with that.
You see, I won't be able to gowith that particular tenant,
(16:45):
unfortunately, and I think itwas also an aggressive breed, I
believe.
So I was like that's alreadytwo things that I have to
compensate, and if you keepchanging your rules for
everybody, it's not a standard,you see.
Speaker 1 (16:59):
So you need to pick one set of rules, be comfortable
with it and then go with theflow because, like you said,
maybe they were the perfecttenant, but it was just that one
little detail, that the dog wasa little chunkier than it
needed to be exactly.
Speaker 2 (17:13):
and then the other thing also will be reviewing
their previous tenancy.
So that's a big thing.
Normally we call the previouslandlord and ask them would you
recommend this particular tenant?
It will be surprising how manypeople have said no, because at
first when I learned about thattrick where you can ask the
(17:37):
previous landlord, I thoughtthey would probably lie and say
yes to get rid of the tenant.
People are honest because thenthey're like you know what?
I don't want you to deal withthe same thing I dealt with and
I've had so many people tell meno.
And when they tell me no, Iknow it's for a good reason and
I don't want to deal with thesame thing that they deal with.
Speaker 1 (17:57):
So that's really important and a key thing.
Exactly, oh.
So that's really important anda key thing, Exactly, oh, wow.
So you mentioned, of course,the calls at 4 am and you having
to kind of teach clients orresidents.
You know what an emergency isand what an emergency isn't, but
how do you handle those?
You know whether it's 6 in themorning or 6 in the evening.
How do you handle maintenanceissues on behalf of the actual
(18:20):
property owner?
Are you making all those calls?
Are you handling the plumbingissues?
Are you going there with aplunger yourself?
Speaker 2 (18:27):
That's a good one.
So luckily I have a team ofindividuals who are helpful and
I have a plumber, electrician,and I have a few of each Whereby
in Baruch I have a differentset of contractors versus in
Hammoos I have a different setof contractors versus in Hammond
, where I have a different setof contractors because some
people don't like to travel.
If it's anywhere after 30 milesthey're like nope, we're not
(18:50):
going.
So I try to have differentpeople whereby at least if
something happens, an emergency,I'm covered and the tenant is
covered, because one thing aboutany emergency is you never know
when it's going to happen.
And then tenants don't like towait, of course, which I
understand, because if I was intheir shoes, I probably would be
(19:13):
freaking out and want things tobe done yesterday.
However, sometimes it's likeit's not really an emergency and
you're like you know what?
I'll give you 24 to 48 hours.
I'm reaching out to thisparticular contractor and most
times they are calling again,calling it.
When are they coming?
I'm like most times acontractor has to finish a job
(19:33):
before they show up.
So what I say doing, giving thecontractor their number please
call them when you're on yourway and give them a timeline
such that they need to be homewhen you show up, because if not
, I'll be the one bringing thekey.
And I'm like, if they can meetthere on their own and also that
covers me, whereby I'm not intheir property with their
(19:54):
belongings just in case they saysomebody came and took my
belongings while I wasn't home.
They were home, I don't have toworry about that issue.
Speaker 1 (20:04):
So, as the property owner you know, your take of
course the property manager.
You're taking care of the calls.
You're making sure the plumbingissue.
Am I ever getting calls fromyou as the property manager
saying hey, you know, Ms Joneshas called me again.
This is the third time that Ihave to send a plumber.
Or am I able to live my lifeblissfully and you're just
sending me a bill?
Speaker 2 (20:24):
So that's the thing.
Most of my clients, especiallyproperty owners.
They don't really have to dealwith any of that.
I have to schedule everythingon my end and then all they get
was this happened, it's resolvedand this is pretty much how
much it costs and everythinglike that.
Speaker 1 (20:43):
You see, that's what everybody would want.
So let's kind of back up.
I know you mentioned the freestructure before, but let's talk
just a little bit about that interms of are there different?
Maybe packages, you handle justthe leasing and I handle the
maintenance, or you handle themaintenance and I handle the
leasing.
How are fee structures set up?
(21:04):
And, you know, is it a one sizefits all?
Speaker 2 (21:07):
No, it's not, and I'm glad you mentioned that,
because so many times we thinkit's one size fits all but it's
not.
So the property owner candecide OK, I want you to just
manage the day toto-day, butI'll take care of the emergency
calls, of the repairs andmaintenance things like that,
because then they will havetheir own system set up and if
(21:30):
that's the case, then I won'tcharge them the same fee as
opposed to if I'm doingeverything to manage that
particular property.
Normally I charge between 8% to12%.
For the ones who are 8%, prettymuch they are managing
everything, which none of themdo, unfortunately, because one
time one of my clients startedas 8% but I ended up doing
(21:53):
everything anyway.
So we had to go back to 12%because I was literally managing
all the calls and whatnot,because they will call her.
She wasn't able to respond, shewas so busy, and then they end
up calling me back and it wasboth of us were doing the same
thing.
So I told her we're eithergoing to do it.
You see, it's like we have tobe fair to each other.
The other one is glad to nothandle anything at all.
(22:16):
She doesn't want to deal withit, she just gives me, uh, tells
me grace what happened.
That's all I need to hear.
It was resolved moving on.
So for that particular one, Idon't really have to call her
and tell her this is going onright now.
No, she's like she doesn't evenwant to know what's going on at
the moment because it willstress her out.
So I should rather I resolveeverything, then get back to her
(22:39):
when everything is resolved,let her know how much it costs.
Yeah.
Speaker 1 (22:43):
I kind of get the feeling that you're in the
middle and that it could be aheadache on both sides in terms
of the tenant and the propertymanager.
I already know what type ofproperty manager I would be,
that's why I'm not one.
But you know what liability asa property manager do you have.
But you know what liability asa property manager do you have,
(23:10):
because if I set a standard that, as we mentioned before, I
don't want a dog over 50 pounds,and I just so happen to be
driving by and I'm like I swearthat dog looks like he's 55
pounds and then somethinghappens, so what type of
liability as a property managerdo you have to deal with in
terms of making sure you aremeeting?
You know the criteria that theproperty owner has, and to that
satisfaction, because I'd be theperson passing by.
Why are the blinds crooked?
And you know this one foldedback, grace, you know, can you
(23:33):
have the tenants fix the blinds?
They're not straight.
So you know, tell me thehassles that you have from the
property owners and what type ofliabilities you have as a
property manager.
Speaker 2 (23:42):
Yes, some of the hassles I'll mention the hassles
first would be cleaning up andwhatnot.
But we do maintenance checksevery six months and I do
explain to them too.
Sometimes we tell tenants OK,this is what we expect from the
property.
We put the blinds up when youmove in.
They were up, we took picturesand we did a walkthrough.
(24:04):
All this was in the house.
However, it's hard sometimes togo through all that checklist
and make sure everything isexactly like you found it, you
see.
So I tell property owners thatwear and tear can be
understandable and it's okay.
Say, for example, maybe wornout carpet, you see, or a few
(24:27):
scratches on the walls, thingslike that.
So just be concerned thatthings might not be 100%.
Because this is a tenant,they're not going to take care
of your property the way youwould if you're living in there,
that's absolutely right.
However, just be moreunderstanding that we are doing
our best.
And also, the good thing I likeis knowing that this is a big
(24:50):
structure.
You see, so long as it's stillthere, it can still be salvaged.
Whatever we are worrying aboutthese cosmetic things can be
salvaged.
So I tell them not to stress somuch about those small small
things and if they feel likemaybe that's not the right
client, if this is a problemclient, I'm sorry to say, then
(25:12):
we'll figure out.
Do they need to get at theleast Like what do we need to do
?
But then also you have to thinkabout if those small small
items are what you're worriedabout.
Think about leaving thatproperty vacant and losing out
on rent, and then you know,guaranteeing that you'll find
the best 100% client who willmeet all these things and treat
(25:34):
your property the best way youwant it to be treated.
Speaker 1 (25:37):
So what are some misconceptions that, for
starters, a property manager mayhave?
Because, like you said, youlearned a lot.
There were some things that youdidn't know.
So what were somemisconceptions that maybe you
had about being a propertymanager that you learned along
the way and obviously you'reokay with them because you're
still in the field?
Speaker 2 (25:55):
Oh, some of the misconceptions that I would not
deal with people's problems,that I was just that in between
I just collect this check andpass it on or whatnot.
I've dealt with so much andthings which don't even concern
me, things which I shouldn'treally know about.
But then you have to understandwhen people leave somewhere,
(26:16):
leave work, they go home, that'stheir home, and guess what?
Anything that's not functioningin their home.
Guess whose problem it is?
Speaker 1 (26:24):
It's my problem.
Speaker 2 (26:26):
So that's the biggest thing here and that's one thing
I had to realize and just havecompassion for them about that.
And a good thing.
I come from a medicalbackground, as a registered
nurse, so I deal with that atwork, knowing that people have a
lot of stress.
So I try not to bring my stressto them and I'm like, okay, I
know this is happening, I knowit's stressful.
(26:47):
I try to calm them down as muchas I can and if something is
happening, I'm like what is thebest solution?
How can we work together,always trying to find a win-win,
(27:11):
so to make it at least easieron everybody.
Speaker 1 (27:13):
But yeah, it's interesting.
This is not really what I want.
I want the 8% price, but Ireally need the 12% care.
So what are some of themisconceptions that you found
that the property owners had interms of going into an agreement
with you and found out oh, youknow, this is not quite what I
thought it would be.
Speaker 2 (27:31):
Sometimes it's hard to understand what goes into the
property, especially when itcomes to repairs and maintenance
.
Say, for example, an HVACsystem breaks down.
If it's not able to getrepaired, you're going to have
to replace it.
So which means you need to haveenough reserves to take care of
that issue and the tenant isnow waiting for months.
(27:53):
You have to make sure you havethose results there and then.
So things like that can be alittle discouraging for some
property owners, and alsothey're so sudden because you
don't know when it's going tohappen, whereby I always
encourage them, always havereserves, whereby when we have
this big issue coming up, youneed to take care of it, because
the tenants are not going towait, and then you're going to
(28:15):
lose money if they have to leaveand things like that, and they
can also sue you, you see,because then if that property is
inhabitable legally, they cansue you that you're not taking
care of that problem, and so wecan try to work together and I
can try to prepare for it andthey'll reimburse me through the
rent.
(28:35):
But yeah, we try to take careof all those issues as they come
up.
Speaker 1 (28:39):
And how easy is it in terms of communication to work
together?
Is there basically a digitalplatform?
Is a lot of this taken care ofthrough computers or electronics
or, you know, is it still oldfashioned?
You're going to be picking upthe phone and giving me a call
and letting me know what's goingon or that I need to go and buy
a new HVAC system.
Speaker 2 (28:58):
I do email and text a lot and call yes.
However, I do have anapartmentscom.
I have accounts set up wherebyI input all the information
there.
Do the maintenance requestsencourage tenants to request
online, whereby our maintenancetechnicians can also see those
(29:18):
requests?
Most times, tenants are textingcalling me directly.
However, I also go back in thatsystem and fill in whatever was
done and all the requests thatcame in.
And the other thing about theproperty owners I do email them.
Okay, this happened, this ishow we took care of it and just
keep them abreast of everything,and it depends on their mode of
(29:40):
communication as well.
So some people prefer call me.
Some people don't even checktheir messages, you see, or
emails.
So I call them and let themknow what's going on.
Speaker 1 (29:50):
And how do you keep up with the new trends in terms
of properties and even just thenew laws and rules and
regulations in terms of whattenants can and can't do, what
property managers and propertyinvestors can and can't do?
Speaker 2 (30:03):
That's a good question.
It's being aware of what'sgoing on in your surrounding and
also networking a lot.
I do a lot of networking andthat's why I'm involved, and
also the CEs that we take asrealtors.
That also help, because welearn a lot of anything to do
with properties.
You see, even propertymanagement.
(30:24):
They teach those classes, andso that keeps me abreast of
what's really going on, and Ilisten to a lot of podcasts like
yours, as well as other onlineplatforms on Facebook, youtube
and different platforms, wherebyI'm learning more information
about property management, notjust in Louisiana, but literally
(30:46):
in New York and differentstates as well.
Speaker 1 (30:49):
Well, I've definitely learned a lot.
So I guess, as we wrap up, whatwould be your final piece or
best piece of advice to somebodylooking to find a property
manager and then for thatinvestor that's trying to decide
do I want to try and be my ownproperty manager, or should I
call somebody like Grace?
Speaker 2 (31:07):
I would recommend doing your research and also
finding out exactly what do youwant from that property manager.
What are your goals for thatproperty?
Think about what you want thatproperty for before you even
purchase it, because having thatin mind is important, because
then that influences thelocation You're able to purchase
(31:27):
that property in, instead ofjust thinking it was a by the
way afterwards.
That would help you have theexit strategy.
And also, look around you.
You say I'm sure there's aproperty manager in that area.
Something might be going on.
Ask those people for references.
You see, do your researchonline.
(31:48):
Yeah, and call and interview asmany as you can and whoever you
feel most comfortable with.
Just try them out for a fewmonths and see how the
relationship goes and go fromthere.
Speaker 1 (31:59):
I see you have that calming spirit.
Seems like you've alreadymentioned that you try and take
the stress out of the situation,so I imagine it's, you know,
piqued a lot of curiosity.
So how can people that may needa property manager reach out to
Grace and find out moreinformation?
Speaker 2 (32:14):
Oh, thank you.
I can be reached at grace atgoodwoodrealtycom.
Thank you.
I can be reached at grace atgoodwoodrealtycom, or my cell
phone number is 985-269-6615.
And again, this is grace atgoodwoodrealtycom and
985-269-6615.
Speaker 1 (32:33):
And you also have a podcast too.
You might want to throw that inthere too.
Thank, you.
Speaker 2 (32:37):
It's Wealth and Wellness with Grace on YouTube.
Wealth and Wellness with Grace.
Speaker 1 (32:42):
Well, grace, thank you so much.
I still don't know which wayI'm going to turn, but I'll
definitely give you a call if Idecide that I want to go ahead
and have some rental property,because I can tell you for sure,
I don't want the headache.
I want you, you know, I want aproperty manager that's going to
take care of it all.
Just send me an email sayinghey, you know, we had a problem,
it's fixed, we're all good, goback to life.
Speaker 2 (33:03):
Oh, thank you so much , kim, I really appreciate that.
Speaker 1 (33:06):
It was great having you.
Speaker 2 (33:08):
Yeah, I really appreciate it so much.
Speaker 1 (33:15):
Selecting the right property manager or management
company is crucial for yoursuccess of your real estate
property.
Here are some tips to help youmake an informed decision.
For starters, define your needs.
Start by identifying yourspecific needs and expectations
of a property managementResearch.
You heard Grace say it over andover again Conduct research.
Do a thorough research toidentify the potential property
(33:38):
managers or management companiesin your area.
Be sure to check thecredentials.
You know there are lots of scamartists out there, so verify
the credentials andqualifications of the property
manager or management company.
Check out their certifications,memberships.
Ask for references.
You probably will do really,really good by getting a
personal reference from somebodythat you may know.
(34:00):
And then, finally, check outneighborsfcuorg forward.
Slash financial education tolearn more on how to use the
money you have, make the moneyyou need and save the money you
want.
Welcome to Money Matters, the podcast that
focuses on how to use the moneyyou have, make the money you
need and save the money you want.
Now here is your host, ms KimChapman.
Welcome to another edition ofMoney Matters.
I am your host, kim Chapman.
Do you have any property thatyou want to put up for rent?
But you're worried about thehassle.
(00:22):
You know what does that mean.
Do I have to worry about callsat 3 am in the morning because
the toilet won't flush?
Well, today we're going to betackling an essential topic for
real estate investors hiring aproperty manager.
From screening candidates tounderstanding their role, we're
going to cover everything thatyou need to know so you can go
ahead and make an informeddecision, if that's going to be
(00:43):
right for you.
So joining me today is Ms GraceNavasalo.
Hi, grace, and thank you somuch for joining me today.
Hi, ms Kim.
Thank you so much for having mewhen I found out that you did
property management, this isdefinitely a topic that I wanted
to cover.
I know a lot of our listenersare interested because, again,
we want to invest in property,we want to have rental property,
(01:07):
and it just seems simple on theforefront, but when you really
do a deep dive.
I've talked to people that doit, and sometimes it can be a
headache and having people callyou trying to find renters, and
so property management seemslike that's the solution.
So I want to dive in and findout what that's about.
But can you share with us howdid you get started in property
(01:27):
management industry and whatinspired you to even pursue this
path?
Speaker 2 (01:33):
Oh, thank you so much for that wonderful question,
kim.
I started in 2019.
And the reason I startedproperty management was out of
necessity, because at the time,I had a rental and I didn't have
a property manager.
And also I did a lot ofresearch and did a lot of
networking with other investorsand all I had were negatives
(01:56):
about property managers.
Therefore, I was forced into it.
I had to learn everything Ineeded to learn about property
management and luckily, I gotthe best tenants initially,
because I didn't learneverything I needed to learn
about property management andluckily, I got the best tenants
initially, because I didn't knowwhat I was doing.
I was learning on the go andthrough that experience, I
continued learning as much as Icould.
(02:16):
Online platforms.
I would get into othernetworking events and learn
about property management andalso ask other investors what
they were facing, such that Ididn't have to deal with the
same thing and how they werehandling issues.
And also I became a member ofthe National Association of
Realtors in 2021, 2022, wherebyI'm able to learn more
(02:43):
information about propertymanagement, about real estate in
general, as a realtor withGoodwill Realty, and also I'm
also with NREA, new Orleans RealEstate Investment Association
Group so I'm a member of that aswell where we meet every other
Thursday and we learn so muchinformation about property
(03:04):
management, real estate ingeneral, all the legalities of
real estate, and that has helpedme on Facebook groups, being a
part of a lot of circles whichcan help you, and these Facebook
groups are in different states,different countries, and the
funniest thing I learned was weface similar issues and so we
(03:25):
help each other in that way socan you walk us through what the
typical responsibilities of aproperty manager or property
management company are?
they are several and complex.
Initially I thought it was justcollecting a check from a
tenant.
Speaker 1 (03:40):
I think a lot of investors think that when they
get into the business and that'swhy I really wanted to have
this conversation, because it'smore than just, you know, having
a property, having a tenant andexpecting a check every first
of the month so help usunderstand a little bit better
what goes into propertymanagement.
Speaker 2 (03:57):
It is a lot from finding the tenant and also
screening that particular tenant, because not everybody who is
going to reach out to you willbe the best tenant.
So screening all thoseprospective tenants and through
the screening process you getthe most qualified one according
to your criteria.
Once they become your tenant,you make sure they do the
(04:20):
walkthrough inspection and alsothey have to abide with the
lease.
So enforcing the leasethroughout the tenancy is a big
thing which most times we forget.
But you have to keep up withthe lease and remind the tenants
to do the same Through that,also making sure they make
timely payments If they arebehind on rents, making sure
you're reaching out and if youhave to initiate an eviction,
(04:41):
that's a big thing becausesometimes you might deal with
some people who might not beable to keep up with the rents.
So going through with eviction,that's another thing.
Another thing would also be anymaintenance issues.
So that's been one of thebiggest things that I've dealt
with, because things break downat any time.
(05:02):
You just never know.
4 am, like you mentioned 3 amcalls.
Speaker 1 (05:06):
That would be a nightmare.
That's what I always thinkabout when I think of oh God you
know, do I want to really rentsome of this property?
Do I want somebody calling mefor a plumbing issue?
I don't want to deal with myown plumbing issue.
Speaker 2 (05:17):
Exactly.
And the funniest thing is, forsome reason I've never really
dealt with any emergencies lateat night in my own house.
But if I tell you how manytenants have called me at three
or four in the morning, it'sseveral.
Sometimes it's even a littlething.
You see, it is an emergency tothem.
(05:38):
However, it might not be anemergency to you.
So training tenants, tellingthem what is an emergency and
what isn't an emergency, and incases where it's like a fire,
water hazard, like seriousemergencies, of course they have
to call you in those wee hoursin the morning.
However, if you're talkingabout theft, you need to call
(05:58):
911.
Don't call me.
So training tenants is a bigthing that we do.
And also making sure that theproperties are actually covered
that's a big thing, becausesometimes we forget that the
houses need to stay covered withinsurance.
And making sure when somethingis coming around say, for
(06:19):
example, there's a weatherchange Like recently we did have
like some storms that happenedmaking sure that even before
that you prepare the tenants,you see, are they evacuating?
You need to keep up with that.
If they are, who's securing theproperty?
And then, after the stormpasses, then are you shaking on
the properties to make sure thatnothing was damaged and
(06:41):
reaching out to the tenants.
So it's a few things here andthere and also risk risk
mitigation, because so manytimes if we don't do the right
thing, sometimes people might betriggered to do what?
To reach out to their legalteam to make sure that they can
file a claim against you.
So making sure that at leastit's less in the business
(07:03):
because you rather communicateand have a good relationship
with those tenants such thatthey will not bring a suit
against you and your company.
Speaker 1 (07:11):
Sounds like there's a lot of education involved and I
know, of course, one of thebenefits is definitely the fact
that you do the screening interms of finding those tenants.
But as an investor or aproperty owner, how do I choose
a good property manager who'sgoing to help me screen?
You know what are the thingsthat I should look for in a
property manager or a propertymanagement company.
Speaker 2 (07:32):
That's a good question.
I would recommend researchingand also finding out from other
investors in the area who theyrecommend and through that that
can give you a good idea who tomaybe who to work with, and also
have something in writing.
Don't just go with whoever theygave you and they have this
(07:52):
whole agreement but you don'teven have know exactly what's,
what are the expectations ofthat property management service
.
You need to have that inwriting.
Know what are the feestructures, because there are
different fees which initially Ididn't know and I didn't charge
for, because I have a couple ofclients that I manage their
(08:12):
properties but I never chargethem all these fees because I
was just trying to be nice andhelpful to them.
However, I realized maintenanceis a big fee that you need to
make sure that you're followingup with those.
Maintenance that takes your time, that takes your money, and
then also securing all thosecontractors.
You see, because that's whysometimes property management
(08:35):
companies make an upcharge forsuch services, because you have
to follow up and make sure thatthose people did the work right,
to follow up and make sure thatthose people did their work
right.
And other fees whereby we aresecuring our tenant.
That's a fee the monthlymaintenance.
That's a fee whereby thehomeowner or the landlord has
(08:56):
their peace of mind, but for youyour phone keeps ringing, you
see, so that's the fee that youhave to compensate the property
manager for, and other littlethings such as risk mitigation,
whereby if I'm having thisrelationship with this tenant,
is it really preventing allthese suits.
You see, so making sure thatthose property managers pretty
(09:17):
much have the experience andexpertise in those different
areas.
Communication is a big thing.
A lot of people don't reallylike communicating, but I really
like to communicate and that'swhy I'm with Toastmasters,
because I wanted to get betterin my communication and make
sure that our email, text, calland whereby everybody is on the
(09:39):
same page, and so communicationis important and also making
sure that they are complyingwith your needs and goals.
Speaker 1 (09:47):
So in your introduction you talked about a
lot of different organizationsyou belong to.
So for a property managementcompany or just an individual,
are there minimum credentials orcertifications that are
required that I should look foras an investor?
Speaker 2 (10:02):
As an investor.
Actually, in Louisiana, you'renot required to have any
certifications and credentials.
However, the more credentialsyou have, the better.
No-transcript.
I remember before I became arealtor, I thought maybe I
didn't need to become a realtor.
(10:23):
However, when I was goingthrough the certification to
become a realtor and thelicensing, I learned so much and
all the things that I didn'tthink were important.
Right now I look at it as thisis important.
You see, I could have beenliable for something if I didn't
know it, and just because youdon't know something doesn't
mean that you can't be found atfault, you see.
(10:46):
So a lot of people, especiallymom and pop landlords, do some
things without knowing thatactually that's violation of the
law.
So I recommend learning as muchas possible and also having the
certifications needed, and evenif they might not be required,
I really encourage them to goahead and get those
certifications.
At least you learn somethingwhereby you're protecting
(11:08):
yourself and also you're doingright by yourself and your
clients.
Speaker 1 (11:11):
Okay.
How do property managers handlethe tenant screening and
leasing process?
Speaker 2 (11:17):
So it's done differently.
Different companies dodifferent things, but I'll say
what we do as Giza Homes.
We have an online platformthrough apartmentscom where for
particularly with the screeningwith the listing is different.
Listed through Apartmentscom,the tenant or prospective tenant
(11:44):
can go on that particularproperty and put in an
application and through theapplication, they do a credit
screening and a background checkand also they can upload the
information on there, such astheir W-2s and their ID, whereby
, as soon as they get approved,we would review that information
(12:06):
and let them know if they'reaccepted or they're not,
depending on what our criteriais.
So most times we show them theproperty and then they get to
apply online to fill out thatapplication and submit the forms
that are necessary, and then weget to tell them if it's a goal
(12:27):
or not.
Speaker 1 (12:28):
So as a property manager, or really as the
property owner, can I specify,or, I guess, how close of a line
is it for me to be able to say,ok, I want this type of tenant
or that type of tenant, withoutbeing discriminatory?
Can I say I only want a family,nobody single.
You know what kind of thingscan I specify again without
(12:52):
discriminating somebody?
Speaker 2 (12:54):
So that is a big violation because that's a fair
housing violation.
I recently had a tenant who waslike I don't want a family.
And I was like if you're notliving in a property, you really
cannot discriminate.
Or if it's not a neighborhoodwhich is 55 plus older, you
can't really discriminate, yousee, because that's an age
(13:15):
violation.
So there are so many violations, especially for fair housing,
such as race, color, age, sexyou see familiar, origin, things
like that.
So we try to make sure that weencourage and educate our
clients to have a standardwhereby the way we enforce it is
(13:37):
like we have this criteriawhereby if this particular
person meets that criteria, itdoesn't matter if they have a
family, if they're single, wedon't even have to ask them do
they have kids?
That's a discrimination.
So we have to ask them how manypeople believe in the household
.
So whereby we are coveringourselves, not thinking OK, what
(13:58):
ages are these?
Not thinking, okay, what agesare these.
And you see, so at least we arecovering ourselves and we are
letting our clients know thatplease make sure that we have
this standard and we are notdiscriminating.
Speaker 1 (14:11):
And so what are the typical things that go with that
standard?
Speaker 2 (14:14):
The typical things would be we I'll say maybe one
of the ideal clients would havesome kind of credit, Okay, and
kind of credit would be like at580.
You see, about 580, they wouldhave an income, An income.
And if they don't have aparticular income, if they have,
say, for example, they're avoucher client and they're
(14:35):
getting some source of income,because then we have to show
that we are able to pay for thatrent, and normally we have it
as two times, two and a half,the amount of that month's rent.
Okay, yes.
And the other thing would bethere's background.
You see, what is actually onthat background Is that
(14:59):
background?
Is it?
Does it have like sex offender?
Does it have like somebodymaybe committed a very, I don't
know?
like something really violent,but it has to depend on exactly
what crime you see.
You see, was it a firearm?
And then if it was a firearm,how long ago?
And things like that how longago, whereby we have to protect
(15:22):
ourselves and also the people wesend into the property.
And then, for whatever theycome up with, if we approve them
, that's when we'll put it inaddendum that we do not accept
such and such Because we aregoing back to what we accepted.
But if they did such and such,yes, and then the other thing
(15:43):
would be evictions.
We try not to approve anybodywho had an eviction in five
years or less, because then wefeel like the way you treat it,
it's a higher risk.
Exactly the way you treated thatprevious person is the same way
you might be able to treat us,and we try to avoid that.
And the other thing would bescreening for pets.
Do you have pets?
Speaker 1 (16:03):
we ask that too and can you list that as a standard,
that you don't want a residentor a tenant with pets?
Speaker 2 (16:11):
yes, because then sometimes they're aggressive
breeds.
If they're aggressive breeds,our insurance won't cover, and
so that restricts us taking thatparticular tenant.
Speaker 1 (16:21):
That's a very good point.
Speaker 2 (16:22):
Yeah, and also the weight limit, you see, because
recently I got a tenant who wasgreat on paper, but they told me
their dog weighed 110 poundsand I had to look back and look
at that criteria.
It says 50 to 60 pounds max, soI have to go with that.
You see, I won't be able to gowith that particular tenant,
(16:45):
unfortunately, and I think itwas also an aggressive breed, I
believe.
So I was like that's alreadytwo things that I have to
compensate, and if you keepchanging your rules for
everybody, it's not a standard,you see.
Speaker 1 (16:59):
So you need to pick one set of rules, be comfortable
with it and then go with theflow because, like you said,
maybe they were the perfecttenant, but it was just that one
little detail, that the dog wasa little chunkier than it
needed to be exactly.
Speaker 2 (17:13):
and then the other thing also will be reviewing
their previous tenancy.
So that's a big thing.
Normally we call the previouslandlord and ask them would you
recommend this particular tenant?
It will be surprising how manypeople have said no, because at
first when I learned about thattrick where you can ask the
(17:37):
previous landlord, I thoughtthey would probably lie and say
yes to get rid of the tenant.
People are honest because thenthey're like you know what?
I don't want you to deal withthe same thing I dealt with and
I've had so many people tell meno.
And when they tell me no, Iknow it's for a good reason and
I don't want to deal with thesame thing that they deal with.
Speaker 1 (17:57):
So that's really important and a key thing.
Exactly, oh.
So that's really important anda key thing, Exactly, oh, wow.
So you mentioned, of course,the calls at 4 am and you having
to kind of teach clients orresidents.
You know what an emergency isand what an emergency isn't, but
how do you handle those?
You know whether it's 6 in themorning or 6 in the evening.
How do you handle maintenanceissues on behalf of the actual
(18:20):
property owner?
Are you making all those calls?
Are you handling the plumbingissues?
Are you going there with aplunger yourself?
Speaker 2 (18:27):
That's a good one.
So luckily I have a team ofindividuals who are helpful and
I have a plumber, electrician,and I have a few of each Whereby
in Baruch I have a differentset of contractors versus in
Hammoos I have a different setof contractors versus in Hammond
, where I have a different setof contractors because some
people don't like to travel.
If it's anywhere after 30 milesthey're like nope, we're not
(18:50):
going.
So I try to have differentpeople whereby at least if
something happens, an emergency,I'm covered and the tenant is
covered, because one thing aboutany emergency is you never know
when it's going to happen.
And then tenants don't like towait, of course, which I
understand, because if I was intheir shoes, I probably would be
(19:13):
freaking out and want things tobe done yesterday.
However, sometimes it's likeit's not really an emergency and
you're like you know what?
I'll give you 24 to 48 hours.
I'm reaching out to thisparticular contractor and most
times they are calling again,calling it.
When are they coming?
I'm like most times acontractor has to finish a job
(19:33):
before they show up.
So what I say doing, giving thecontractor their number please
call them when you're on yourway and give them a timeline
such that they need to be homewhen you show up, because if not
, I'll be the one bringing thekey.
And I'm like, if they can meetthere on their own and also that
covers me, whereby I'm not intheir property with their
(19:54):
belongings just in case they saysomebody came and took my
belongings while I wasn't home.
They were home, I don't have toworry about that issue.
Speaker 1 (20:04):
So, as the property owner you know, your take of
course the property manager.
You're taking care of the calls.
You're making sure the plumbingissue.
Am I ever getting calls fromyou as the property manager
saying hey, you know, Ms Joneshas called me again.
This is the third time that Ihave to send a plumber.
Or am I able to live my lifeblissfully and you're just
sending me a bill?
Speaker 2 (20:24):
So that's the thing.
Most of my clients, especiallyproperty owners.
They don't really have to dealwith any of that.
I have to schedule everythingon my end and then all they get
was this happened, it's resolvedand this is pretty much how
much it costs and everythinglike that.
Speaker 1 (20:43):
You see, that's what everybody would want.
So let's kind of back up.
I know you mentioned the freestructure before, but let's talk
just a little bit about that interms of are there different?
Maybe packages, you handle justthe leasing and I handle the
maintenance, or you handle themaintenance and I handle the
leasing.
How are fee structures set up?
(21:04):
And, you know, is it a one sizefits all?
Speaker 2 (21:07):
No, it's not, and I'm glad you mentioned that,
because so many times we thinkit's one size fits all but it's
not.
So the property owner candecide OK, I want you to just
manage the day toto-day, butI'll take care of the emergency
calls, of the repairs andmaintenance things like that,
because then they will havetheir own system set up and if
(21:30):
that's the case, then I won'tcharge them the same fee as
opposed to if I'm doingeverything to manage that
particular property.
Normally I charge between 8% to12%.
For the ones who are 8%, prettymuch they are managing
everything, which none of themdo, unfortunately, because one
time one of my clients startedas 8% but I ended up doing
(21:53):
everything anyway.
So we had to go back to 12%because I was literally managing
all the calls and whatnot,because they will call her.
She wasn't able to respond, shewas so busy, and then they end
up calling me back and it wasboth of us were doing the same
thing.
So I told her we're eithergoing to do it.
You see, it's like we have tobe fair to each other.
The other one is glad to nothandle anything at all.
(22:16):
She doesn't want to deal withit, she just gives me, uh, tells
me grace what happened.
That's all I need to hear.
It was resolved moving on.
So for that particular one, Idon't really have to call her
and tell her this is going onright now.
No, she's like she doesn't evenwant to know what's going on at
the moment because it willstress her out.
So I should rather I resolveeverything, then get back to her
(22:39):
when everything is resolved,let her know how much it costs.
Yeah.
Speaker 1 (22:43):
I kind of get the feeling that you're in the
middle and that it could be aheadache on both sides in terms
of the tenant and the propertymanager.
I already know what type ofproperty manager I would be,
that's why I'm not one.
But you know what liability asa property manager do you have.
But you know what liability asa property manager do you have,
(23:10):
because if I set a standard that, as we mentioned before, I
don't want a dog over 50 pounds,and I just so happen to be
driving by and I'm like I swearthat dog looks like he's 55
pounds and then somethinghappens, so what type of
liability as a property managerdo you have to deal with in
terms of making sure you aremeeting?
You know the criteria that theproperty owner has, and to that
satisfaction, because I'd be theperson passing by.
Why are the blinds crooked?
And you know this one foldedback, grace, you know, can you
(23:33):
have the tenants fix the blinds?
They're not straight.
So you know, tell me thehassles that you have from the
property owners and what type ofliabilities you have as a
property manager.
Speaker 2 (23:42):
Yes, some of the hassles I'll mention the hassles
first would be cleaning up andwhatnot.
But we do maintenance checksevery six months and I do
explain to them too.
Sometimes we tell tenants OK,this is what we expect from the
property.
We put the blinds up when youmove in.
They were up, we took picturesand we did a walkthrough.
(24:04):
All this was in the house.
However, it's hard sometimes togo through all that checklist
and make sure everything isexactly like you found it, you
see.
So I tell property owners thatwear and tear can be
understandable and it's okay.
Say, for example, maybe wornout carpet, you see, or a few
(24:27):
scratches on the walls, thingslike that.
So just be concerned thatthings might not be 100%.
Because this is a tenant,they're not going to take care
of your property the way youwould if you're living in there,
that's absolutely right.
However, just be moreunderstanding that we are doing
our best.
And also, the good thing I likeis knowing that this is a big
(24:50):
structure.
You see, so long as it's stillthere, it can still be salvaged.
Whatever we are worrying aboutthese cosmetic things can be
salvaged.
So I tell them not to stress somuch about those small small
things and if they feel likemaybe that's not the right
client, if this is a problemclient, I'm sorry to say, then
(25:12):
we'll figure out.
Do they need to get at theleast Like what do we need to do
?
But then also you have to thinkabout if those small small
items are what you're worriedabout.
Think about leaving thatproperty vacant and losing out
on rent, and then you know,guaranteeing that you'll find
the best 100% client who willmeet all these things and treat
(25:34):
your property the best way youwant it to be treated.
Speaker 1 (25:37):
So what are some misconceptions that, for
starters, a property manager mayhave?
Because, like you said, youlearned a lot.
There were some things that youdidn't know.
So what were somemisconceptions that maybe you
had about being a propertymanager that you learned along
the way and obviously you'reokay with them because you're
still in the field?
Speaker 2 (25:55):
Oh, some of the misconceptions that I would not
deal with people's problems,that I was just that in between
I just collect this check andpass it on or whatnot.
I've dealt with so much andthings which don't even concern
me, things which I shouldn'treally know about.
But then you have to understandwhen people leave somewhere,
(26:16):
leave work, they go home, that'stheir home, and guess what?
Anything that's not functioningin their home.
Guess whose problem it is?
Speaker 1 (26:24):
It's my problem.
Speaker 2 (26:26):
So that's the biggest thing here and that's one thing
I had to realize and just havecompassion for them about that.
And a good thing.
I come from a medicalbackground, as a registered
nurse, so I deal with that atwork, knowing that people have a
lot of stress.
So I try not to bring my stressto them and I'm like, okay, I
know this is happening, I knowit's stressful.
(26:47):
I try to calm them down as muchas I can and if something is
happening, I'm like what is thebest solution?
How can we work together,always trying to find a win-win,
(27:11):
so to make it at least easieron everybody.
Speaker 1 (27:13):
But yeah, it's interesting.
This is not really what I want.
I want the 8% price, but Ireally need the 12% care.
So what are some of themisconceptions that you found
that the property owners had interms of going into an agreement
with you and found out oh, youknow, this is not quite what I
thought it would be.
Speaker 2 (27:31):
Sometimes it's hard to understand what goes into the
property, especially when itcomes to repairs and maintenance
.
Say, for example, an HVACsystem breaks down.
If it's not able to getrepaired, you're going to have
to replace it.
So which means you need to haveenough reserves to take care of
that issue and the tenant isnow waiting for months.
(27:53):
You have to make sure you havethose results there and then.
So things like that can be alittle discouraging for some
property owners, and alsothey're so sudden because you
don't know when it's going tohappen, whereby I always
encourage them, always havereserves, whereby when we have
this big issue coming up, youneed to take care of it, because
the tenants are not going towait, and then you're going to
(28:15):
lose money if they have to leaveand things like that, and they
can also sue you, you see,because then if that property is
inhabitable legally, they cansue you that you're not taking
care of that problem, and so wecan try to work together and I
can try to prepare for it andthey'll reimburse me through the
rent.
(28:35):
But yeah, we try to take careof all those issues as they come
up.
Speaker 1 (28:39):
And how easy is it in terms of communication to work
together?
Is there basically a digitalplatform?
Is a lot of this taken care ofthrough computers or electronics
or, you know, is it still oldfashioned?
You're going to be picking upthe phone and giving me a call
and letting me know what's goingon or that I need to go and buy
a new HVAC system.
Speaker 2 (28:58):
I do email and text a lot and call yes.
However, I do have anapartmentscom.
I have accounts set up wherebyI input all the information
there.
Do the maintenance requestsencourage tenants to request
online, whereby our maintenancetechnicians can also see those
(29:18):
requests?
Most times, tenants are textingcalling me directly.
However, I also go back in thatsystem and fill in whatever was
done and all the requests thatcame in.
And the other thing about theproperty owners I do email them.
Okay, this happened, this ishow we took care of it and just
keep them abreast of everything,and it depends on their mode of
(29:40):
communication as well.
So some people prefer call me.
Some people don't even checktheir messages, you see, or
emails.
So I call them and let themknow what's going on.
Speaker 1 (29:50):
And how do you keep up with the new trends in terms
of properties and even just thenew laws and rules and
regulations in terms of whattenants can and can't do, what
property managers and propertyinvestors can and can't do?
Speaker 2 (30:03):
That's a good question.
It's being aware of what'sgoing on in your surrounding and
also networking a lot.
I do a lot of networking andthat's why I'm involved, and
also the CEs that we take asrealtors.
That also help, because welearn a lot of anything to do
with properties.
You see, even propertymanagement.
(30:24):
They teach those classes, andso that keeps me abreast of
what's really going on, and Ilisten to a lot of podcasts like
yours, as well as other onlineplatforms on Facebook, youtube
and different platforms, wherebyI'm learning more information
about property management, notjust in Louisiana, but literally
(30:46):
in New York and differentstates as well.
Speaker 1 (30:49):
Well, I've definitely learned a lot.
So I guess, as we wrap up, whatwould be your final piece or
best piece of advice to somebodylooking to find a property
manager and then for thatinvestor that's trying to decide
do I want to try and be my ownproperty manager, or should I
call somebody like Grace?
Speaker 2 (31:07):
I would recommend doing your research and also
finding out exactly what do youwant from that property manager.
What are your goals for thatproperty?
Think about what you want thatproperty for before you even
purchase it, because having thatin mind is important, because
then that influences thelocation You're able to purchase
(31:27):
that property in, instead ofjust thinking it was a by the
way afterwards.
That would help you have theexit strategy.
And also, look around you.
You say I'm sure there's aproperty manager in that area.
Something might be going on.
Ask those people for references.
You see, do your researchonline.
(31:48):
Yeah, and call and interview asmany as you can and whoever you
feel most comfortable with.
Just try them out for a fewmonths and see how the
relationship goes and go fromthere.
Speaker 1 (31:59):
I see you have that calming spirit.
Seems like you've alreadymentioned that you try and take
the stress out of the situation,so I imagine it's, you know,
piqued a lot of curiosity.
So how can people that may needa property manager reach out to
Grace and find out moreinformation?
Speaker 2 (32:14):
Oh, thank you.
I can be reached at grace atgoodwoodrealtycom.
Thank you.
I can be reached at grace atgoodwoodrealtycom, or my cell
phone number is 985-269-6615.
And again, this is grace atgoodwoodrealtycom and
985-269-6615.
Speaker 1 (32:33):
And you also have a podcast too.
You might want to throw that inthere too.
Thank, you.
Speaker 2 (32:37):
It's Wealth and Wellness with Grace on YouTube.
Wealth and Wellness with Grace.
Speaker 1 (32:42):
Well, grace, thank you so much.
I still don't know which wayI'm going to turn, but I'll
definitely give you a call if Idecide that I want to go ahead
and have some rental property,because I can tell you for sure,
I don't want the headache.
I want you, you know, I want aproperty manager that's going to
take care of it all.
Just send me an email sayinghey, you know, we had a problem,
it's fixed, we're all good, goback to life.
Speaker 2 (33:03):
Oh, thank you so much , kim, I really appreciate that.
Speaker 1 (33:06):
It was great having you.
Speaker 2 (33:08):
Yeah, I really appreciate it so much.
Speaker 1 (33:15):
Selecting the right property manager or management
company is crucial for yoursuccess of your real estate
property.
Here are some tips to help youmake an informed decision.
For starters, define your needs.
Start by identifying yourspecific needs and expectations
of a property managementResearch.
You heard Grace say it over andover again Conduct research.
Do a thorough research toidentify the potential property
(33:38):
managers or management companiesin your area.
Be sure to check thecredentials.
You know there are lots of scamartists out there, so verify
the credentials andqualifications of the property
manager or management company.
Check out their certifications,memberships.
Ask for references.
You probably will do really,really good by getting a
personal reference from somebodythat you may know.
(34:00):
And then, finally, check outneighborsfcuorg forward.
Slash financial education tolearn more on how to use the
money you have, make the moneyyou need and save the money you
want.
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