You can own a great investment property, but if it’s bleeding money, it won’t do much except give you a headache! You preserve your wealth and your assets first and foremost with excellent property management.
So many first-time investors make the grave mistake of ignoring property management. They either try to do it all themselves or hire the wrong team. Investors, these are the qualities you want in your property management team!
Outstanding Property Managers Have...
...Experience and Expertise
Look for property managers with a proven track record in managing properties like yours. Experience can make a significant difference in handling various situations that may arise. Not only does experience mitigate risk, but it helps your team stay cool under pressure.
...References and Reputation
Check references and reviews from other property owners who have worked with the property manager. A good reputation is a strong indicator of a property manager’s reliability.
...Communication Skills
Property managers should be able to communicate clearly with both property owners and residents, addressing concerns, providing updates, and handling conflicts. Property managers should be accessible and responsive. Not only does close communication keep you happy as an owner, but it improves resident satisfaction and retention. And that retention is essential for your success!
...Local Market Knowledge
Managing investment properties isn’t about assets in isolation. Great managers should know market trends, rental rates, and neighborhood dynamics to set appropriate rental prices and make informed decisions. Depending on the company’s size, they should be able to scale their operations to tackle different markets with the same level of skill and consistency.
...Impeccable Organization
Property managers need strong organizational skills to keep track of lease agreements, maintenance schedules, rent collection, and other essential tasks. If your managers seem scatterbrained or unable to keep up with everything, that’s a big problem!
...Adaptability in the Face of Issues
Real estate can present various challenges, from maintenance issues to resident disputes. A property manager should be a problem solver who can handle these situations effectively and efficiently. They think clearly in crisis, can mediate disagreements, and quickly adapt and address the unexpected.
...Legal Know-How
Understanding pertinent laws and regulations is crucial to ensure compliance and protect the property owner and its residents. Property managers should be well-versed in local and state laws. They must follow the proper procedures and have the foresight to include provisions in lease agreements.
...Financial Acumen
Property managers must have strong financial management skills. They should be able to handle rent collection, budgeting, and financial reporting accurately. After all, they’re reporting to you as an owner. If they’re numbers and analysis aren’t correct, how will you know? Your management team must demonstrate financial savvy and understanding.
...Cost-Effective Management
Property managers should demonstrate their ability to maximize your property’s profitability through efficient management. Just bear in mind that that doesn’t mean they’re about cheap solutions. Your management team must strike a balance between cost and quality. After all, these are the repairs and renovations that will last…and that’s cost-effective in the long run!
...A Network of Reliable Contractors
The best property managers have close and amiable working relationships with contractors in their markets. These contractors should have a track record of excellent, diligent work. Your property management team should know who to call when an issue arises – no time wasted!
...Transparency and Integrity
Honesty and transparency are essential qualities. Property managers should handle financial matters with integrity and provide accurate financial statements to property owners. This integrity must extend to the rental residents, too. Look for managers who are professional but forthcoming. Relationships, personal and professional alike, are built on trust. Can you trust your manager?
...Marketing Capacity
For an investor, vacancies are costly. Management isn’t just about dealing with occupied properties – it’s also about effective marketing! You need a team that can attract reliable, high-quality residents. What’s their marketing strategy for your properties?
Finding the right property manager requires careful evaluation and consideration of these qualities to ensure your real estate investments are well-managed and profitable. It’s not easy – but it’s worth your while.
Are you worried about managing your investment properties?
REI Nation has an in-house team of premier property management professionals ready to take your turnkey investments to the next level!
