Hiring a property manager is a major decision for any property owner, landlord, or investor. The right property manager can make the difference between a successful investment and a costly endeavor.
Here, we discuss the key considerations when considering hiring a property manager, the hiring process, and how to land the best person for the job.
Why Hire a Property Manager?
Even if a landlord loves their job, handling everything can often be challenging, especially if you’re not a pro. In many cases, taking care of all the tasks associated with managing a property is simply too time-consuming and overwhelming. Some owners may also not have the necessary skills or expertise to handle the most predominant responsibilities, such as managing the finances, creating rental agreements, and responding to tenant inquiries. Property managers can take all of these responsibilities off a landlord’s plate, ensuring their properties are well-managed, while the landlord can relax and enjoy the fruits of their investments.
What to Look for in a Property Manager
You want to ensure they have the right experience and expertise to successfully manage your property. First, you must determine what type of property management is most relevant for your property; for example, if it is a residential property, you may want to look for a property manager with experience managing rental properties. Make sure they are well-versed in local and state laws and the laws that govern residential tenancy.
You should seek managers that are resourceful. They need to be well connected to the real estate community to secure the best deals and ensure the property benefits from the best services out there.
Customer service should also be their priority. Ask yourself if the property manager is prompt in responding to tenant inquiries, and observe if they have an approachable attitude that allows them to develop positive relationships with tenants. Reputable property managers will have a positive reputation within the local community.
The Hiring Process
- Create a list
It’s always best to start the search as early as possible before your business overwhelms you. Create a list of potential agencies. The agency should be in close proximity to the house and should cover all the services you need.
After contacting them, establish a meeting to interview the agency. This is a time you should use best to get to know them and to let them know you and your situation. During the interview, you should explain the details of your property and ask questions about the agency’s services and fees. You should also inquire about their customer service and whether they have a preferred method of handling disputes.
Remember to always ask for references, review their past performance, and conduct a background check before making a final decision. This additional research can help to ensure that the right person is hired.
Interest yourself in what kind of emergency service they have in place, such as 24-hour access to emergency personnel, in order to balance the safety of the tenants and the property. It is also important to look at their administrative capabilities and ascertain whether they have processes in place to efficiently handle tasks such as tenant screening, rent collection, and maintenance/repair requests.
Don’t forget to ask what financial services they offer, such as providing a detailed accounting of all income and expenses. This will help you track and manage any unauthorized expenses that may occur.
After completing the interviews, you should be able to narrow down your list to three or four finalists.
The last step is to review the agencies’ contracts you have chosen. Make sure to read the contracts in detail and ask questions if something is unclear.
If you’re in the process of hiring a property manager, congratulations. It’s a safe decision that will secure the profitability of your rental property, as well as all the underlying processes that would usually fall under the landlord’s responsibilities. This article will guide you to find the perfect fit for your property.
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