Entrusting your valuable properties to a property manager is a significant decision. It’s crucial to find someone who not only handles the day-to-day responsibilities efficiently but also maintains open communication and acts in your best interest.
WAIT! Why is a property manager looking for another property manager? In my case, it’s about aiding some of my investors in evaluating potential investments in different states.
Pro tip: If you can, bring your team with you! On a recent trip to Ohio with an owner, I was with 3 other agents and a mortgage broker. All of our different backgrounds created many ideas and strategies to tackle the new frontier. My specialty is working with S8 so my job was to find another manager that is familiar with that business model, alongside discovering their management practices.
With that in mind, let me share the key steps that I used to find a trustworthy property manager:
- Referrals and Recommendations:
- Begin by seeking referrals from fellow property owners, real estate agents, or local real estate associations. Personal recommendations often lead to finding experienced and reputable property managers.
- Online Reviews and Ratings:
- Browse online platforms, like Google, Yelp, Facebook, Thumbtack, or specialized property management directories, to read reviews and ratings from both property owners and tenants. This provides insights into the manager’s track record. If the tenants are commenting that they’re happy that’s a good sign too.
- Interview Multiple Candidates:
- Don’t settle for the first option you come across. Interview multiple property managers to compare their experience, approach, and fees. Ask about their communication style and how they handle emergencies. A great conversation you can have with them is by asking about some of their horror stories (be prepared!). This can tell you about their legal understanding, quality of their properties, and their problem solving methods/ responses.
- Verify Licensing and Credentials:
- Ensure that the property manager is licensed and has the necessary certifications or memberships in relevant industry associations. This demonstrates a commitment to professional standards.
- Inspect Managed Properties:
- Visit properties currently managed by the candidate. Pay attention to the property’s condition, tenant satisfaction, and overall upkeep. It’s a reflection of the manager’s work.
- Review Management Agreement Thoroughly:
- Like any contract, read and understand the terms and conditions of the management agreement. Pay attention to fees, responsibilities, and any termination clauses. A clear agreement sets the foundation for a successful partnership. Some important clauses to note are; termination clauses, listing terms and fees (this is separate from management fees in some cases), and who has responsibilities for evictions/ rehabs/ utility bills/ taxes. That’s a lot of stuff so make sure you know everything before giving up the reins to your property!
- Ask for References:
- Request a list of references from the property manager. Contact these references to gain insights into their experiences working with the manager. Ask about their level of satisfaction and any challenges they faced.
- Transparency and Communication:
- Effective communication is key. Ensure the property manager provides regular updates on property performance, tenant issues, and financial statements. A transparent manager keeps you informed and involved. Of course, if everything is going smoothly they shouldn’t have anything to report back (hopefully!). A lack of communication is certainly concerning so when getting references this is something to ask about.
- Visit Their Office:
- A physical office space can be a sign of professionalism and stability. It also provides an opportunity to meet the team and get a sense of the manager’s operation.
- Trust Your Instincts:
- After conducting thorough research and interviews, trust your instincts. Choose a property manager who aligns with your goals and values, and with whom you feel comfortable entrusting your investments. You may not be ready for a property manager yet because things are going well self managing too.
Finding a reliable property manager takes time and due diligence. By following these steps and trusting your judgment, you can build a successful and trusting partnership. Ultimately saving you time and money.
A lesson from investing in OhioIn Ohio, we discovered that the combination of high precipitation, elevated humidity, and heavy snowfall can lead to a range of foundational issues, and how to deal with it. These include everything from moisture seepage to the potential for freeze-thaw cycles, which can gradually wear down a property’s structural integrity. Being from Phoenix, AKA the Valley of the Sun, this wasn’t something I was familiar with. Some of the concrete basements had large cracks that showed. These are not a cheap fix so always make sure to get an inspector and do due diligence!
As you’ve learned, finding a reliable property manager is crucial. Now, it’s your turn to take action. Interested in a free consultation to assess your unique real estate needs? Contact us today. Stay informed with the latest real estate insights and articles by subscribing to updates. For more valuable content, explore our additional social media channels below. Thank you for considering us as your partners in real estate success.