Managing a property isn’t an easy task since you need to regularly conduct an inspection, ensure on-time rent collection, consistently implement property maintenance, and provide solutions to every problem. A good property manager should also know how to run everything smoothly between the owner, tenants, and him through effective communication.
As a property owner, the worst thing to do is waste your effort, money, and time on a bad property manager. For that reason, it’s necessary to rigorously probe a property management company before deciding to hire them. It’s better to spend more time screening them at the beginning than to be stressed out and problematic in the long run. Keep in mind that you’re hiring them to lighten up your workload and not add up to your difficulties in the process.
Below are listed red flags to watch out for when looking for a property manager.
Too Busy For You
The use of a property manager is to ease the stress of managing the property from the owner. If they seem too busy to take care of your demands, then that’s a major turn-off. If you notice at the beginning that the property manager has signs of lousy communication, constant tardiness, and obvious distraction, then be warned of how much time they can spend on the property.
You need someone who will be dedicated to serving all your needs, and you don’t want to end up calling on maintenance or collecting rent all the time. A property manager also serves as a leasing agent. They should have time to show tenants around the property, screen individual applicants, and arrange documentation for contracts. It’s advisable to research online and find out more information regarding the qualifications you need to look for in a property manager before selecting one.
Bear in mind that you’ll know if a property manager will take care of your needs if they take your interview seriously and do everything to prove their value to you.
Disorganized
A reliable property manager should help you stay organized. But if he runs late to a meeting, forgets details, seems inexperienced, lazy, and most of all bad at communicating, then he doesn’t have his act together.
Before hiring, you should consider checking their past work performance along with their experience in management. The portfolio of their work will help you know if they are organized and willing to handle your needs properly. It’s also a great idea to ask for past client references, to be able to ask for feedback regarding their working attitude and performance level.
Don’t Understand Your Market
There are various types of rentals, and unfortunately, not all property managers are experienced in all types. They may only be familiar with one type. When hiring, make sure you have a clear understanding of the type of property they have managed before. It’s crucial to know which area they serve and what kind of tenants they have worked with.
Just because a property manager is experienced in one type of market doesn’t necessarily mean he can be qualified in a different kind. Do some thorough research to find out if the property manager is competent enough to take on the challenges and tasks that the job entails.
No Performance Proof
The management company should be able to provide proof of how they have been working in the past and also be able to give data on their success with the property they’ve managed.
If they can’t provide performance proof of how they’ve helped manage other properties, then there is a possibility they’re not performing well in their business, and you shouldn’t hire someone who’s not transparent enough to prove their worth.
Eviction Are High
If a property manager has a high eviction rate, then it’s a total red flag. Before getting a property manager, they should be able to provide details on how they will fill up your rental spaces, along with past performance data. If their past property management records resulted in higher vacancy rates and eviction rates increased, then the company isn’t qualified to be hired.
No Inspection Records
A property manager should know how to implement proper inspection in all aspects of property management. Inspection records should always be provided for the property owner to know what needs to be fixed and how much it would cost.
If a property management company doesn’t mention anything with regards to the process of inspection, then it simply means that the manager doesn’t implement the routine procedure to check the property.
Tenant’s Bad Reviews
If the property manager has terrible reviews from the tenants, it’s considered a major red flag. Visit their website page to check on the reviews, but if there aren’t any, you can ask past clients to confirm their managing style. If the reviews are negative, don’t mind employing them because they are not worth it.
Conclusion
As a property owner, you’re determined to have a trustworthy, hardworking, and self-driven manager to handle your property right. Furthermore, in selecting a property manager you should consider qualities, such as being a good communicator, knowledgeable in full-service leasing, possessing comprehensive marketing and advertising skills, and being an expert in cost-effective and reliable maintenance.
While checking on the reasons to use a property manager in your investment property, it’s also important to use this article as a guide to spot the red flags and use them as a determinant in hiring one.
