It can be intimidating to deal with lease property, especially when units owned are in the hundreds or if the units are in another town. A seasoned property manager can transform your lease operation into a profitable, headache-free investment. The wrong manager, however, can be the cause of loss of finances, loss of tenants, and loss of sleep.
It pays to review your options carefully before turning the keys of your real estate investment. The right property manager will protect your assets, get the highest return possible, and resolve tenant issues in a professional manner. These are the things that you need to learn to make the correct decision.
Knowing Your Role as a Landlord
Develop Your Management Objectives
Start by working out what you want in the property management operation. Are you after someone to deal with everything from tenant selection through repair calls, or do you want to be actively involved in key decision-making yet avoid the day-to-day work?
Take your portfolio into consideration, the type of property, and your long-term agenda. Someone can be a genius at working with single-family homes, yet may be weak in commercial property or high-rises. Likewise, if your plan includes growing your portfolio, be sure your potential manager can grow their service level too.
Plan Your Budget
Property management fees are generally between 8% to 12% of the rents per month, although they are highly location-specific and service-specific. Some of the managers will impose additional charges for tenant placement, repair coordination, or lease renewal. Ask the potential candidates for special fee arrangements and consider all these expenses in your deliberations regarding your property investment.
Essential Traits to Look for in a Property Management Company
Knowledge and Experience of the Local Market
Your property manager should be familiar with your local tenant market. For instance, look for local companies if you need professional property management in OKC. He or she must be knowledgeable about fair market rents, local area trends, and tenant-landlord law. Be certain to interview candidates regarding their experience with your type of property, as well as how they would increase your rental return.
Seek experienced managers that will conduct market analysis, making recommendations based upon the best of present circumstances. Their experience has a direct impact upon your bottom line in terms of getting the best price and lower vacancy times.
Good Communication Skills
Successful property management has at its heart successful communication. Your manager will be in frequent communication with tenants, contractors, and yourself. They will need to be responsive in answering questions, keep property matters clearly explained, and handle all the parties professional.
When first talking to them, take notice of how fast they respond to your questions and if they are clear in the way they present themselves. Improper communication will tend to cause misunderstandings, undue repair delays, and upset renters.
Technologies and Systems
Modern property management includes robust systems for rent collections, work requests, financial statements, and tenant correspondence. Be certain to interview prospects about their technologies and how they will keep you informed about the performance of your property.
Websites that grant real-time access to the financial statements, maintenance updates, as well as tenant messages can be a time-saver, offering important information about the operation of your property investment.
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Steps to Take Before Choosing
Verify Their Track Record
Look for recommendations among present, as well as previous, clients. In particular, those whose property classes are the same. Ask about tenant retention, average vacancy duration, how repairs are treated by the manager, disorderly tenants, and more.
Do not miss doing this – interviews of other landlords are precious experience in the manager’s real-day-to-day work and reliability.
Researching Online Presence
Google, Yelp, and industry-specific websites should be scouted for reviews. While some negative reviews are inevitable, be on the lookout for the common denominator of complaints or repeated poor reviews. Review their website and social media platforms as well in order to gauge professionalism and marketplace position.
Determining the Appropriate Direction of Your Investment
Picking a property manager involves the consideration of price, service, and trust. Rock-bottom price virtually always isn’t the best value, yet the highest price isn’t always the highest service. Look for a manager whose experience, communication, and service delivery are in alignment with your individualized needs and objectives.
It pays to interview several prospects, check the references, and use your common sense. The best property manager can be your valued partner in the creation of your real estate wealth, but the wrong selection can hurt your return on investment and create unnecessary anxiety.
