The Real Estate Investing Authority®

Which Type Of Property Management Company Is Best For You?

The Pros and Cons Of The 3 Types Of Property Management Companies.


If you are new to the property management scene, you may not know the difference when it comes to the types of companies available to you. Believe it or not, it can have a substantial impact on how your bottom line shakes out. From being in the business we know that there are 3 different styles of management companies available to you. Let’s jump in and explain the pros and cons. From there, you will be able to decide which one is best for you!




“The Mom and Pop-eration”


Better known as a ‘mom and pop’, it dates back to the infantile stages of businesses in the United States. Traditionally the parents would run the business and employ other family members to assist in the day to day operation.


PRO: One of the greatest advantages of a mom and pop manager is that it’s super small in size, and you can likely deal with the owner of the company directly; even through mediums such as texting or in-person meetings about questions you may have. When it comes to your property and tenants it’s essential that you can get answers as soon as possible. You can gain this edge with a smaller company.


CON: One of the biggest downsides is ironic because we just portrayed it as a benefit; but it’s the truth! Since the company is so small, and usually inexperienced, they don’t have the capacity to handle larger, complex issues such as apartment turnovers, evictions, or even assisting in helping you purchase an investment property. NVEST® is a service that Nexus Property Management offers to help our clients secure their next cash flowing rental property. Learn more about it here. These smaller companies can handle simple things like changing locks, placing tenants, and handyman style calls, but if you need the expertise of a plumber or electrician they will likely subcontract that job. You will find when a job is subcontracted the price goes up and the quality goes down!


“The Regional Outfit”


A regional company, like Nexus Property Management, is one that operates usually out of multiple offices in a cluster of nearby states. With a regional company there is a simplified structure of roles, and they are typically familiar with community trends.


PRO: Regional companies will typically have a simple structure of employee roles. You usually can’t speak to the Owner of the company, which is good in our opinion. If you are speaking to the owner of a property management company about your clogged toilet, that owner is likely speaking to others about their clogged toilets too. Is that the best use of that company owner’s time? Probably not! Having a structure of roles is efficient and productive. The maintenance works repair things, the maintenance director supervises them, the leasing agent rents apartments, the general manager oversees all roles, and the owner works on forward progress for the company. This is an example of how Nexus is setup, and the checks and balances make our operations quite smooth!


CON: Regional companies often-times are very busy and don’t have the time to get emotionally invested with owners, properties, or tenants. There are no in-person meetings usually, cell phone numbers aren’t exchanged, and tenants don’t come in and hang out drinking coffee. Friends aren’t usually being made! It’s less impersonal compared to the mom and pop setup, but that’s because it’s setup as a business, not a social club.


“The Corporate Spreadsheet”


The third and final type of property manager is the corporate outfit. A corporate property manager is one that operates nationally or across multiple regions. They are commonly managing strip malls, traditional malls, and mass quantity properties.


PRO: Companies of this size have the resources and structure to take on hundreds and thousands of units at one time. Imagine owning a few high-rise buildings in New York City, and you needed a property manager. You would almost certainly have to go with a corporate property manager simply because no one else could handle a task that large! In addition, corporate managers can take on more complex properties such as strip malls and traditional malls, in which retailers are competing to get the best lease agreements for their respective companies. This is something that requires a great deal of savvy and experience to ensure you are getting the best value.


CON: One of the cons here is that you are dealing with folks in office settings, who usually have never seen your property! They will be obtaining information from a third party like a vendor or sub-contractor. So, when you need information they have to obtain it from someone else. There is no direct boots on the ground speaking to you (in most cases). This type of setup can cause delays in communication, lack of quality, and an overall inefficient situation especially if time is of the essence!


In sum, you should carefully consider what type of manager is best for you by evaluating what your goals are. It’s in our opinion that a mom and pop is not efficient for the long run, and a corporate entity simply is too big to care. A regional property manager is a happy medium between those two that incorporates efficiency, direct knowledge, and an element of loyalty. This is exactly what you want. Not too small, not too big


Gregory Rice is the Vice President of franchise sales for Nexus Property Management™.  

Nexus Property Management™ is a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.


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