Hiring a property manager poses a somewhat tricky issue to most property owners. Quite often proprietors prefer to leave the day-to-day running of their estates to a management company. Among the reasons for wanting to bring on-board a property manager include matters of location, size of the estate and proprietors’ know-how on property management.
In the above cases, hiring a property manager becomes essential. However, we suggest you take into account several factors during the vetting process of potential property managers.
1. Current portfolio
The number of units managed by a real estate company stands as a significant indicator of their suitability. Also how well they manage property will tell how well you’d expect them to maintain your estate.
For example, if a prospective property manager currently manages 30 units and you wish to hand over an additional 50 units, you’d want them to give a detailed account of how they plan to handle the extra work.
Do they have the personnel to take on more units? Or are they willing to bring onboard new staff owing to the soon to expand portfolio?
You must raise the following issues and concerns to ensure you leave your property in good hands.
There’s no substitute for experience. Ask the prospective managing company on the number of years they’ve operated. Where possible confirm their claims with the authorities. The longer the property manager’s experience, the more likely they got what it takes to manage your estate competently.
Years in operation don’t always translate into stellar performance. Take time and read online reviews to evaluate client opinions about a particular property manager.
An excellent property manager can be hard to come by, and similar to other fields real estate is littered with quacks. A reliable property manager will ease your burden. A great manager is a great problem solver. Although the world isn’t a perfect place, your tenants ought to think highly of your choice of the management firm.
Hiring a property manager is costly, depending on the experience, size of portfolio and location. You’ll incur management fees for managing and marketing your property. However, stay clear of companies that charge a low-ball fee.
5. Open communication
Transparency is key to a successful relationship with your property manager. We emphasize on a full disclosure between all parties. The manager should furnish you with information on lease agreements, income and expenditure reports, and other relevant documentation. Responsiveness is also vital. When you contact a property manager with issues or questions, you should get prompt and honest answers.
6. Have a written agreement in place
After carrying out due diligence and settling for your preferred choice of the management firm, arrange for the drawing up of a legally binding agreement as to your terms of engagement which includes a termination clause.
Hiring a reliable, reputable and experienced property manager is key to your success in the real estate industry. The above six tips will raise your odds of engaging a quality property manager. For unrivaled property management services check out americanrealpm.com.