Though some real estate investors would balk at the typical commission received by a property management team – usually around 8 percent – sharp investors recognize the real value in a great property management structure.
We’ve said it before, and it cannot be stressed enough: your property managers are your best line of defense against anything and everything that can threaten the value of your property and the consistency of cash flow.
Of course, bad property managers? They’re a waste of your time and money. So how do you know you’re on board with a team that will take you to new heights of investment success? Here are the seven qualities you should look for.
7 Qualities in Excellent Property Management
1) An Eye for Detail
Some people will try to say, “it’s just a rental,” when dismissing the need for attention to detail. Rental residents don’t deserve less because they don’t own the property themselves. Sure, it’s not likely to be their dream home – but that doesn’t mean it should be sloppy. Great property managers pay attention to the details: from secure fixtures to a neat paint job. But it doesn’t stop at the physical property, either. Your management team takes care to account for expenses, provide documentation, and keep everything organized for you come tax season.
2) Local Connections
A great property management team is fully enmeshed in their local market. Wherever they operate, they should be knowledgeable of the local area – and who in it they need to contact. Throughout the course of your property’s life, you’ll no doubt need the services of local vendors. Your property managers should know who to call to get the best results possible!
3) Experience & Knowledge
Every business must start somewhere, but you don’t want to put your financial future in the hands of amateurs. Great property managers have ample experience in this business. They know the tricks of the trade and can confidently navigate the nuances of property management.
4) An Investor Mindset
Bad property managers aren’t concerned with your investment: they’re concerned with their own profit, regardless of long-term outcomes. By contrast, great property managers have their sights on the big picture even as they handle day-to-day operations. It’s about establishing a reputation and protecting your equity. Their strategies aren’t about cutting corners to save a buck. They’re about quality, longevity, and resident retention. Great managers have the owner’s best interests in mind.
Learn why investors trust Premier Property Management Group with their rental properties.
5) Prepared for Anything
Rental properties can be full of surprises, and not all of them are pleasant. Great managers aren’t ever left wondering how to handle a problem. They’re prepared with the right contacts and strategies so that they can spring into action when the unexpected happens. They have the agility and discernment to make the best choices for both your investment property and its residents.
At the end of the day, they handle issues big and small with grace and expertise.
6) Responsive & Communicative
Believe it or not, the real estate investment business is a people business. Establishing positive relationships is key to success, particularly between managers and residents and managers and owners. On one hand, you need a management team that keeps you in the know about property needs, performance, and issues. They can explain to you accurately what has been done and why. Similarly, they’re responsive and communicative with residents, too.
When they have an issue that needs addressing, they don’t leave the residents hanging. So many rental families must chase down their manager for an update when there’s a problem. Residents should feel secure in the knowledge that the managers care about their experience and address issues swiftly.
7) Warmth & Professionalism
It’s easy to think of property management as only concerned with the property itself. But we know that’s not true! Great managers display warmth and professionalism. They care about you, the owner, and your investment ambitions and do whatever they can to contribute to the growth and success of your portfolio. They also take a vested interest in the residents of the property. They ask for feedback and develop personable relationships.
At the same time, professionalism is always top-of-mind. They’re empathetic but go by the book. They speak to everyone with respect and courtesy, knowing that they don’t just represent themselves, but you, too. Great managers strike the right balance – building genuine relationships while protecting you from liability.
Invest in real estate with a world-class team at REI Nation!
