If you’re new to real estate investing, you may be asking yourself “Should I hire a property manager?” The truth is, going it alone can be exhausting and tie up much of your free time.
When you hire a property manager, they act as your personal assistant for your real estate needs. They’ll take care of tenant complications, those pesky late-night repair calls, and much more.
In this article, you’ll not only learn how to find a property manager, but you’ll also learn how to ensure you’re making the right choice.
A property manager is responsible for the smooth operation of rental units. This includes:
Okay, we’re not going to be sneaky about it—we’re sliding in a little self-promotion, but hear us out. Using an online aggregator like KeyCrew to compare quotes and offerings can enhance your search for the perfect property manager.
An online aggregator provides a quick snapshot of pricing and services in your area. Plus, it can provide insights and reviews, so you find a property manager that aligns with your expectations and investment goals.
Using an online aggregator like KeyCrew is simple. Just complete the following steps:
Before hiring a property manager, you want to ensure that they’re competent and a good fit for your needs. Interviewing with a property manager is an excellent way to ensure that you’re making an informed decision.
Start by asking about their experience in property management, specifically with properties similar to yours. Inquire about the number of years they’ve been in the business and their areas of expertise (residential, commercial, etc.).
Other questions to ask a property manager include:
Reliability is key when hiring a property manager. One of the best ways to gauge a property manager’s reliability is by seeking references. Other landlords who have worked with a property manager can verify their experience, skills, and ability to manage rental properties effectively.
References can also give you insight into a property manager’s working style, communication methods, and their approach to property maintenance, tenant relations, and financial management.
When seeking references from other landlords, do the following:
Before hiring a property manager, you want to ensure they’re legit. Be sure to check their licenses and qualifications. This verifies their legal compliance, professional competence, and commitment to the property management industry.
Here are some ways to find their licenses and qualifications:
Visiting rentals that property managers are managing is a great way to assess a property’s maintenance standards and overall condition. You can also use the exercise to evaluate tenant satisfaction.
To get started, ask the property manager for a tour of the properties they manage. If they’re proud of their work and confident in their management practices, they should be willing to show you around.
Also, consider visiting a property unannounced to get a more authentic view of the daily operations and maintenance standards. If the opportunity arises, speak with tenants about their experiences.
Pay close attention to the maintenance of common areas, facilities, and landscaping. Also, observe the security measures in place, such as lighting, locks, and access control. Lastly, take notes or pictures to compare and contrast different properties and management styles.
The lease agreement outlines the terms and conditions between the landlord and the tenant. Its content can significantly impact your legal rights, financial health, and the overall management of your property.
When reviewing a property management lease agreement, make sure it complies with local, state, and federal laws. Also, know the specifics of the lease agreement, such as rent terms, maintenance responsibilities, and lease termination conditions.
A thorough review can help you identify any terms that might be unfavorable to you or your tenants. Common red flags to watch out for include unreasonable penalties, unclear maintenance obligations, and overly restrictive tenant rules.
To review a standard lease agreement, request a copy from the property manager. Read the entire document carefully and pay close attention to the details. If you’re unsure of anything, seek clarification from the property manager or consult with a legal expert.
The quality of tenants impacts the profitability and condition of your property, as well as the amount of time and resources you spend on management and maintenance.
To check a property manager’s client screening process, request a detailed outline of the criteria they use to screen potential tenants. This should include credit checks, income verification, rental history, criminal background checks, and references.
Ask how they ensure their screening process complies with fair housing laws and other regulations. Also, get a clear understanding of the application process and ask the property manager how they handle application rejections.
Different types of properties require different management skills, knowledge, and approaches. For example, managing single-family rentals can be very different from managing multi-family rentals. These property types can attract different types of tenants, require specific forms of maintenance and come with differing regulations.
When searching for property management, be clear about the type of property you own. During the initial interview, ask a candidate about their experience managing your type of property and request specific examples of properties they have managed.
Also, ask potential property managers about their knowledge of and experience with any legal requirements specific to your property type. This includes zoning laws, short-term rental regulations, or commercial property codes.
Responsive property management can positively impact the success of your rental property. It affects everything from tenant satisfaction to the timely resolution of maintenance issues.
To gauge a property manager’s responsiveness, note how quickly they respond to your initial inquiry about their services. A reply within 24 hours is a good indicator of their general responsiveness.
Be sure to request details on their communication policy. They should have a clear policy outlining how and when they communicate with both tenants and property owners. You can also discuss availability, including after-hours, weekends, and holidays.
Choosing a property manager based solely on price can be tempting, especially when looking to maximize your investment’s returns. However, this can lead to long-term issues that might cost you more than you save.
Lower fees can sometimes mean a lower level of service. A property manager who charges less may be cutting corners, have a higher client-to-staff ratio, or offer less comprehensive services.
Experienced property managers with a proven track record often charge more for their services. Their expertise can be invaluable in helping you through complex issues, optimizing rental income, and ensuring legal compliance.
Before making a decision, first understand how much property managers charge and how these fees are calculated. Compare these fees across different managers to understand what constitutes value for money.
If you’re looking to hire a property manager, it’s important to do your homework, so you make the right decision. These tips can act as a guide on how to hire a property manager and gauge their competency and qualifications.
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