I'm going to be meeting with several companies that manage rental properties. My objective is to find a local company who I can trust to keep me out of the day to day management activities related to a small portfolio of rental houses and small apartments. Of course there is a trade off since I will have to pay these guys but I'm willing to do that in exchange for my time. My time is better spent searching out new opportunities than snaking drains and collecting rents.

Obviously I want someone who is motivated to fill my units with people who will reliably pay rent and do minimal damage. What are the best ways of differentiating the good management companies from the bad ones? While I am not looking to spend insane money on management I am not opposed to spending extra on a better company that will reduce my headaches. It tough to go off of internet reviews because many of the review sites are hijacked by pissed off ex tenants who just one star them and probably make up shit. Do I trust my gut or are there better ways of identifying the right team to make my life easier?

Find out who the big renters are in your area and ask them.

I would simply ask for a list of their top five clients, and contact them directly. They should tell you whether or not the company lives up to their expectations.

I thought about this however just be a use they take care of their big accounts well that doesn't necessarily translate into taking great care of my relatively small portfolio. I was thinking of asking for a list of references in my size range. But then again they get to cherry pick who they give me to.

Is there a general rule for number of properties under management to employed managers? Aka determine if they are over extended or not?

What sort of services can I expect to be included? I'd like to see:

Included:
-list properties and conduct showings as needed
-vet prospective renters
-collect rent
-handle incidental things of a minor nature (I clogged the sink)

I expect to pay additional costs for:
-clean out between tennents
-repair work (tenent fucked the floor up)
-renovation or major contract work
-maintenance above incidental (roof has a leak)

What am I missing from either list?

Are these expectations for service reasonable?

They're going to handle your day to day operations, show unit, collect rent, serve notices. But they're not going to go out and unclog a sink for you. Some companies have in house tradesmen, and you'll get billed for it.

Things like that will nickel and dime you to death, especially if they send someone out for the same problem a few times.

They're not going to screen tenants as well as you, and it costs them nothing to accept a bad one. You're the one that's going to pay for repairs and turnover if they place a bad tenant in there. The only recourse you'll have, is finding a new PM company.

This.

I dont allow my pm company to use their in house guys ever,  under any circumstances. Too much conflict of interests.

I do allow them to place tenants though. I don't get paid, they don't get paid.  

I managed a mech service company until recently so they call me first, if I'm booked they call an independent company for repairs. When i started that,  all of the sudden my repair calls decreased by 80%.

So what are your expectations from them as far as vetting the prospective tenets?

No looming financial catastrophe on their credit,  judgments,  and must have good references from past landlords.

It isn't the rocket science that landlords try to make it.  I operate in 3 rural towns with large packing houses. Lots of meth and somalians.
Other than one guy slaughtering and smoking a horse in his rental,  I've had no significant problems.

Biggest red flag is no landlord references. They always make an excuse why they didn't rent before,  they owned or lived with family.

Being a tenant is a lifestyle (usually brought on by financial irresponsibility). Very few people magically become tenants in their 30s. They should have past landlords.