Not all investors can handle managing their various properties themselves and they need to rely on a manager to maintain their rental properties. Of course, there are some vendors out there who don’t do as good a job as others. To avoid getting stuck with a less-than-stellar property manager, here are some signs of a good one.
There’s no such thing as radio silence. Managers check in with their clients monthly to give them a report on their rentals. These reports include the tenants and if they’ve been causing problems as well as market activity if the client asks for it. Communication is key for making money and maintaining the property in case of repairs or even eviction.
The sign of good property management is low vacancy rates. Red flags should go up if properties have a high turnover of tenants. This is caused by poor management, bad tenant relations, no maintenance or excessive rates. Low vacancy means that the manager is actively caring for the home and staying on top of needs for the tenant to keep them there.
Range of services
Property management is more than making sure the rent is payed. Good firms have a network of contacts and services to keep the rentals in top condition. Managers make inspections, interview potential tenants, watch market activity and more.
Referrals between investors are a way of property managers getting clients. A nice word goes a long way. Good firms have many years of experience. They have an extensive portfolio and a pool of happy clients who are eager to refer the managers to their friends getting into the market.
If the property doesn’t make money, neither does the manager or their client. Good management keeps the tenants in, the money flowing and the repairs done at a good rate. Since property managers are required to know about tax law, they’ll do their best to get the highest return possible for their client.