Wisely Choose a Property Manager and Avoid These 7 Mistakes
Posted by: Colin Ferguson in Business, tags: BusinessYou have a vacation home, a second home or maybe you have just inherited another home and instead of selling in you decide that you want to rent it out, so you go and hire a property manager. Now is the time you find a few surprises just waiting for you.
The problem with property managers is that many of them are not professionals. While it’s true they may have some management experience under their belt, it may not be for the type of property that you have; or they may not take the job seriously; or they may palm it off onto someone else to care for, which happens often when they have many properties to manage. So how can you be sure to get a property manager that is right for you?
You can start by watching out for these 7 mistakes that are common among property managers.
1. PROBLEMS WITH COMMUNICATION: Make sure that you request references from each property manager that you are interviewing. You should have a property manager that will communicate with you throughout the year, especially at the beginning or end of any rental period. If they don’t then it can end up costing you more time and money than managing on your own.
2. LACK OF ACCOUNTABILITY: Does the property manager have a good reputation that needs to be kept that way? Is he or she bonded? Is he or she a licensed real estate professional? If the person you select as your property manager has nothing to lose, they really have no incentive to manager your property well.
3. MAKING PROMISES THEY CAN’T KEEP: Does one of your prospects seem so eager to get the job that they make twice as many promises than the others? This is not a good sign.
4. TREATING YOU LIKE A NUMBER: Property management companies that don’t guarantee you a specific property manager, who you meet yourself, are likely to treat your property as just another number. You want a single property manager or small company with a small management load to ensure your property is given proper attention.
5. NO EXPERTISE OR EXPERIENCE: To avoid problems you want a property manager that specialises in the type of property you have. You don’t want a person who’s used to dealing with office complexes trying to rent out your mountain get-away. They also need to have a good track record for managing their own properties as well as others.
6. LACK OF RESPECT FOR THE TENANTS, YOU AND THE CLIENT: This is a part of being treated like a number with some slight differences. How does the property manager strike you? Do you feel as if they will treat you with the respect you deserve? If they don’t make you comfortable, then your client won’t be comfortable either. There is a way to check this. Do they allow you to ask the questions you want answers to and then treat each question with the utmost importance? Or do they fly past it as if it really doesn’t matter?
7. COMPLACENCY WITH YOUR PROPERTY MAINTENANCE AND TENANTS: You need to have a property manager that can be active in the management of your property and proactive as well. They should be on top of maintaining it and taking care of it all the time. Inquire about their percentage of vacancies and what their tenant turn-over is. Both of these numbers should be on the low side.
When interviewing property managers, you should make sure to screen them on each of these issues. You need a manager that is proactive, professional and experienced and one who will treat you as a partner by keeping in touch with you and treating your property as if it were their own. If you do this, then you will find an excellent property manager that will not only save you stress and time but increase your rental income and turn your property into an asset instead of a liability that it could become with the wrong manager.
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