Hiring the Right Property Manager

Hiring the right property manager

The property manager is your communication HUB. Not just between you, the owner, and the tenant, but also between you and your contractors, banks, agents, and utility companies.  Selecting the right property manager for your business is possibly even more important than selecting the right tenants and properties. So, what makes a good property manager? Before we go into anything else make sure you are hiring a licensed property manger that is insured.

  • Size Matters - You want a midsize property management company to handle your portfolio for you. They should have between 200-2000 properties under their management. This way you avoid working with a small operation that may be stretched too thin to handle your properties/tenants needs and avoid working with a company that is so large to take the time to watch over your portfolio with care.
  • Communication is Key – A property manager is the communication hub for you and you need a person or company that can communicate effectively. You also want a property manager that uses technology effectively. There are a ton of great tools that can help you understand what is going on with your properties even if you aren’t in the same city. Does the property manager take pictures and post them to a photo sharing site for you when tenants move out or when repairs are being completed? Do they use a property management website or portal for you to see what expenses are being accrued and who has paid rent? We suggest you find a company that already has these services in place.
  • Turnover – Yes it will happen eventually you will have a tenant leave or even worse stay in your property and not pay rent. You want a property management company that is able to handle evictions. Ask about the eviction rate and procedure, a high eviction rate could mean the property manager is not screening the tenants well.
  • Repairs could cost you! – Aside from vacancies and deadbeat tenants the next thing that can destroy your return on investment are repair costs. You should have a clear understanding of your property managers repair and maintenance procedures. A property manager that has an in house maintenance person or staff is usually going to save you a good deal of money. Instead of hiring a plumber or handyman each time a tenant calls with a problem they can send out an in house maintenance person which is usually billed at a lower rate.  Find out what they charge and how they handle repairs. (Typically this excludes things needing professionals like plumbing and electrical repairs.)

If you discuss these four things with property managers as you screen them, you will get a good feel for their abilities and find a property manager capable of helping you achieve your goals. You need a good communicator, someone that is handling a decent number of properties, is capable of screening tenants properly and evicting when necessary, and someone that able to handle simple repairs for you in a timely cost effective manner.

 

Mike Slane

Manager

For an in depth discussion of Hiring a Property Manager check out Mike and Brad discuss Hiring your Property Manager on the Plan Prepare Invest Podcast

or check out our YouTube Channel

 




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