How To Be Successful As A Real Estate Bird Dog: Looking for Property Management Companies

In this article I will be covering a strategy that most real estate bird dogs (also known as property scouts) most often overlook, but one that can really help you be successful in your property scouting business. The strategy you will want to use and incorporate into your bird dog business is to look for property management companies because most investors use property management companies to run their properties.

As you build your investor list (and become more and more sought after as a professional bird dog or property scout!) you may be asked to gather information on property management companies for an investor. Whether buying a home, a strip mall, an office complex, an apartment complex, etc., the smart investor will evaluate and line up a property management company before they close on a real estate deal.

You, as a very smart business person, will recognize the value of having relationships with property managers and property management companies in order to provide better service to your investors. A savvy bird dog will have many tools in their toolboxes to help their investors be more successful. Having contacts with property management companies is just one of those tools. Remember, the more value you can bring to your investors and your deals, the more investors will want to do business with you. The more successful you can help them be, the more successful you will be!

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How do you go about finding a good property management company?

Well, first of all, you need to know that there are different specialties of property management companies for the different types of real estate. One size does not fit all. A smart bird dog will understand it is important to pick a property management company that has experience in the type of real estate your investors are buying or researching.

I suggest the following steps to research for good property management companies:

1. Check with a trusted Realtor/Broker for advice. Sometimes Realtors/Brokers will offer management services properties in their marketplace. Often times the Realtor/Broker may not actively manage properties, but will be able to give you information on property management companies to contact in their area. There are always bad apples in any group, so do not assume someone will be a good manager without vetting them carefully.

2. Check with other owners in the area for leads. Often times, they have had experience with one or more property management companies and have researched the local market. It is a good idea to join your local real estate investors group to meet investors and build relationships. If you don’t know where to find your local REIA go to www.REIclub.com where you will find listings by state of real estate investor groups.

3. If you are looking at a particular property and it is practical, drive by the property to speak with tenants. Ask what their experience is with the existing property management company. You can also ask if they have had experience with other management companies that they would recommend.

4. Check with the lenders (if they are local), title companies, or other service vendors to see if they have any recommendations. Local real estate is a small world and reputations are often known by others in the industry.

5. Search online. In today’s world, many property management companies are savvy enough to have their own website. However, do not confuse a pretty website, for a qualified manager.

6. Another obvious avenue is the local newspaper and yellow page directory. You can often use the internet to locate these resources, if you are searching properties across the country.

What are some basic questions to ask?

While working as a bird dog for another investor, always make sure to find out what questions are most important for that investor in evaluating a property management company to work with.

Some basic questions you should ask are:

1. How long has the property management companies been in business with this particular type of property?

2. How many properties do they currently manage?

3. Who will be managing your property? Often times, managers will delegate most of the day to day management to staff. Find out whom that staff will be. Then, talk with those staff members directly to make sure you are confident they know their job and can communicate with you effectively.

4. Do the property management companies and staff have any special licenses or training to manage this type of property? Do they belong to any real estate management associations? (These things can be an indicator of professionalism, but do not always translate to the level of success they will have in managing your property.)

5. What do reviewers say about this company online? Search to see if you can find any reviews of these property management companies online. Comments by reviewers online can be very enlightening.

6. Most importantly, ask the property management companies you are vetting for contact information of other owners who currently use their services, other owners who previously used their services, current vendors, current tenants, and past tenants. Then call, call, call and ask lots of questions. Do not be shy! It is important to your success as a professional bird dog to make sure you have all the information you need about the property management companies to give to your investors. Remember, if you are recommending a property management company, you want it to be the best as that is what will be of most value to your investors.

Finding a great deal on real estate can be very exciting. The property management company you choose will have a great deal to do with whether this investment sinks or swims. Make sure you take the time to vet your management carefully and understand what a key role they play in your success.

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