Pros:
Good communication, organized, nice people, online…read moreowner's web-portal.
Cons:
High fee structure, excessive maintenance, expensive repair/maintenance fees, difficulty finding the initial tenant, long wait time for payment.
I contracted with 33rd Company to manage my single-family home in Olathe, KS, in April of 2015. They had a tenant that met my parameters ready to move in on July 1st, so I had two months to pay a mortgage on an empty home. The first six-months were very challenging as maintenance requests began to pile up immediately. I thought my 20-year-old house was in very good condition (I was told it was during the walk-through), but numerous maintenance requests were made; from minor nuisances, to more complex and expensive work-orders. Early entanglements resulted in my carpet's being cleaned twice (I hired a company when I moved out, and they had another company do it at the tenant's request) and the home being professionally cleaned twice (the place was not clean to the tenant's standards upon move in, and the firm 33rd Company hired to clean it apparently did not do a satisfactory job the first time, so they had to clean it a second time). I fought the redundant charges but ended up having to pay all charges in full.
It's worth conceding that no property is flawless, unexpected things can and will happen and a landlord should be expected to remedy them by whatever means necessary in order to ensure a safe and functional property. However, one month was so bad that I actually had my bank account debited instead of credited because I owed 33rd Company money for all of the fees, maintenance and services provided. One has to keep in mind as well, that 33rd Company receives a maintenance scheduling fee anytime a contractor is dispatched for a repair on the home. Therefore, they are financially incentivized by tenant's making requests. They do attempt to troubleshoot all tenant requests first, but in my experience they weren't often successful.
The last six-months ran more smoothly, with considerably less maintenance requests. Although these months were not completely without nuisance. One example comes to mind where I was charged $250 to unclog (not replace) a water pump inside of a washing machine, a fee that is egregiously high, especially considering the pump was clogged by the tenants living there. I disputed it, but ultimately had to pay the full charge.
Regarding income, despite having the rental amount set $509 above my mortgage payment, I had a net profit of just $840 for the 2015 tax year. Also, in terms of cash flow, be aware that even though a tenant's rent is due to 33rd Company by the 1st of the month, you will not receive your portion of the rent until the 15th of every month at the earliest. It was not uncommon for the payment to hit my bank account until the 18th of month (bank holidays).
The tenant chose to vacate after the year for personal reasons, which was fortunate, because I was planning to terminate my agreement with 33rd Company at that time. My house looked great when the tenants departed and the home was returned in as good if not better condition than when I left it, which was a relief. The outdoors needed some work, but this was handled quickly.
I suppose I had an erroneous assumption that this agreement between owner, renter and property management company, would be a 1/3 equal share partnership. Yet it always felt like a 50/50 partnership amongst the tenant and company, with my home being a hostage and me not having any opinion in matters.
In hindsight, I wish I would have managed the property myself or sold it in the currently booming real estate market. I would not use 33rd Company for any services in the future, nor recommend them to a friend, but I wish them no ill-will and hope they continue to improve their business.
