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Home › Property Management › How to Find a Good Property Manager
Renting out your investment property can be stressful, which is why many landlords invest in property management. A good property manager is an invaluable asset, but how do you find one? By shopping around and asking the right questions.
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A property manager’s job is to handle everything to do with your rental property and remove any stress related to it. So it’s vital to find one that does this well.
For more about what a property manager does, check out our article Property Management: A Step-by-Step Guide.
It’s not always obvious at first glance that you’re dealing with a bad property manager. However, there are some clues to look out for:
Bad rental managers may try to prevent tenant changeovers by not increasing the rent, which costs you money.
A good property manager is proactive and provides the opportunity to find a good tenant who will pay the right price. They should intimately know the property market, and be able to give a quote on potential rents quickly.
A bad property manager doesn’t show interest in the property. They might organise a viewing but they don’t visit the property beforehand or give advice on how you can best present the property. A poor property manager might even leave it to you to organise the viewings.
A good rental manager does the exact opposite. They will visit the property and spend time showing you what you can do to get the highest possible rent. They’ll then do all the work involved in organising viewings and will be there on the day to coordinate it, as well as give suggestions for photography and dressing up the listing.
If a property manager constantly puts forward poor tenants, it means they’re not spending the time to screen them properly. This can leave you with unpaid rent, property damage and extremely high stress levels.
A quality rental manager is experienced at screening tenants and knows a bad one when they see one. They will only put forward quality tenants that you can rely on to pay the rent on time and look after the property.
This includes processes around calling references, properly analysing the supporting documents from prospective tenants, and advertising the property suitably.
A large part of property management is to form quality relationships with a range of tradespeople and other professionals. This allows them to get you the best price and arrange repairs quickly.
A poor quality manager will not put time into forming good relationships, which can cost you money and leave your tenant frustrated when repairs are delayed.
A property manager serves as the middle person between you and the tenant. Many landlords prefer to have no contact and keep their details private. If your tenant is contacting you directly, it means your property manager is not doing their job adequately.
A good property manager is an expert at meeting both the tenant’s and the landlord’s needs, without there being any contact between the two. They are great communicators and proactive problem solvers.
The person you’ve chosen to manage your home should be available when you need them. If you find your calls and emails go unanswered, they may be overloaded with properties or improperly managing their priorities.
This indicates it might be time to look elsewhere for a good property manager.
Your location often determines the cost of good property management. Prices differ between states but even your property’s suburb can make a difference.
Generally, you can expect to pay between 5 and 12 percent of the property’s rent, plus extras like lease preparation or letting fees.
Property management agencies can charge an array of hidden extras, so it pays to ask. Some include:
For a more detailed look at property management fees and a state-by-state breakdown, check out our Property Management Fees article.
Once you have a thorough understanding of the fees and charges involved, you can factor this into your selection criteria. However, be sure not to base your choice solely on cost. Cheaper property managers are cheap for a reason and you will likely find that their service is below standard.
It’s easy to spot poor property management once you’ve already hired a property manager, but it’s even better to spot them beforehand. By asking yourself or a potential rental manager the right questions, you can gain insight into how they operate and whether they are the right property manager for you.
The best way to gauge whether a potential property manager is a good one is to sit down with them in a face-to-face meeting. Learn about the service they offer and get a feel for who they are and how they operate.
You should meet with at least three potential property managers, so you can start to notice the differences and choose a good one.
Some are cheaper than others, but price isn’t the only consideration. Trust your initial feelings and choose one that you feel positive about, even if they cost more. They will likely save you money in the long-run and cause you significantly less stress.
Discovering the property-to-manager ratio is important because it tells you whether your property manager will have enough time to manage your property effectively.
By comparing property managers, you will begin to get a feel for the average amount of properties per manager and see which managers are already run off their feet.
Generally, someone who is managing less than 200 properties will be invested in your property and have enough time to do their job well
Property management is not a particularly rewarding job, which means it takes a special kind of person to do it. They often face frustrated and demanding tenants, as well as uninterested landlords intent on keeping money in their own pockets.
Try to avoid young property managers straight out of study. Although they may be great at their job, more often than not, they won’t stick around once they get a feel for the job.
Look for property managers that have 5 to 10 years’ experience: they can spot poor quality tenants with ease and usually enjoy the job.
To gauge whether you’ve found a good one, you need to fully understand how the property manager operates. For example, you should know how your chosen manager:
The more information you find out, the better your chance at choosing a good property manager.
One sign of a poor quality property manager is a lack of professionalism or effort. When you ask about their services, they may visit your property and verbally offer to manage it for you.
A quality property manager will take the time to write a professional proposal that is tailored to your specific property.
Professionalism is not an indicator of good service on its own, so be sure this is combined with other qualities too.
Once you have a few property managers in mind, it could pay to consider the following:
It’s not surprising that relationships between landlords and rental managers don’t always go smoothly. It might seem like you’re both on the same page at the beginning, but this can change once the property management process gets underway or when challenges arise.
Changing property managers is fairly straightforward and need not be stressful. If you’re ready to switch to a new property manager, these tips should help you get the process started:
Once you’ve screened your potential property managers, be sure that you choose one you like. Afterall, you will be communicating with them regularly on matters that can be frustrating. Building a positive relationship can make the rental process more enjoyable. Start your screening process today by asking for offers from your local property managers.
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