Once you own more than five properties, a property manager is likely to become a business consideration for your real estate investing business. While some real estate investors hire property managers for less than five properties, many find the experience gained through managing the initial properties themselves to be fundamental to their success in finding good managers later on. No matter what your portfolio consists of, your goal is to find a good property manager.
Your search begins with establishing exactly the type of person or company you are looking for. You should make sure these essentials are present in anybody who makes your shortlist.
They must:
Know The Market
Your property manager must not only maintain knowledge of governing laws, insurance requirements and local codes – but also have a keen understanding of what local renters are looking for. They’ll be the ones responsible for making smart recommendations that increase your overall return by ensuring your property becomes or remains desirable with the end result of increasing rental rates, lower turnovers and decreasing vacancies. Their knowledge is key to your property rising above a competitive marketplace.
Excel at Customer Service
If customer service isn’t at the heart of your property manager’s operations, you might want to reconsider your affiliation. You need someone you can depend on to treat both you and your tenants with integrity and professionalism throughout your contract. You should expect constant, relevant communications about how your property is being managed and know that your tenants are being cared for consistently.
Be A Marketing Whiz
Keeping your units full of ideal tenants is a property manager’s primary function, and a marketing plan is essential to ensuring that goal is maintained. A good property manager will work with you to create a marketing plan geared towards maximizing your return on investment for each property. Each plan should be customized for your goals, plans and budget.
Be Awesome with Accounts
Accounting for revenues and expenses with investment property can be a difficult enough task without adding disorganization or incomplete documentation to complicate the chore. Therefore, attention to detail is a crucial skill for your property management choice to possess. Your property manager needs to pay the utmost attention to ensuring that your accounts are attended to with promptness.
You should expect rents collected, monthly statements prepared and bank transfers complete by the 8th of each month at the latest. In addition, you should expect that all of your income and cash flow statements be easily accessible and in the correct order when tax time rolls around.
Focus on these four fundamentals, and you’ll be well on your way to hiring a property manager who will be an asset to your overall real estate investment business.