Property owners leave ordinary in the dust and that suggests there is one primary goal when you purchase investment property: to make money. In fact, you need to make a profit in order to maintain your property and pay someone to manage it.
Hiring a property manager should not be based on an act of faith but on smart business decisions. Business and investing guru Jim Collins coined the phrase “good is the enemy of great.” A good manager may bring you tenants, but a great property manager will make those tenants happy enough to stay for years, and better yet, may provide you with a waiting list of others who wish to rent your property.
There are a number of warning signs that you need a new property manager and clear signs you have hit gold by hiring the right person for the job.
You may own the property, but it is “home” to those who rent it. They want to be proud of the property when friends and family come to visit, and they want to look out the windows and enjoy what they see. A great property manager understands this and stays on top of the groundskeepers to ensure everything looks nice and well-maintained.
In an ideal world, tenants don’t even know your name. The property manager should be so competent that tenants have no reason to contact you.
Your property is a business and should be treated as such. A top-notch property manager gives you the monthly reports on time and never makes you ask for them.
A strong property manager returns your calls and tenant calls in a timely manner. You and your tenants should be able to count on this.
Cash Flow Consistency
When a property is maintained well, advertised properly and tenants are screened appropriately, there should rarely be a vacancy. A great property manager knows to be proactive in advertising, to focus on the best features of the property — like double-pane windows, a newly installed alarm system or solar-heated pool — in order to get people excited about living there.
You know you have a good property manager when he is proactive about finding ways to make residents happy. If he comes to you and suggests a block party, new piece of playground equipment or community meeting to teach residents about utility savings, you have found a gem. You don’t have to agree to every idea, but it is a strong signal that he cares about your property.
Real leaders take action when there is a decision to be made. For example, tenants complain to the property manager about a group of young men who hang out near the property late at night, racing their engines and playing loud music. A strong manager does not wait for a consensus from tenants, ask for opinions or in any way delay what must be done in the best interest of the property and tenants. He simply takes action through the appropriate channels to take care of the problem.
Hire Only the Best
There are no guarantees you will hire the perfect property manager. However, there are actions you can take to increase the odds. A good manager will ensure your cash flow, while a bad manager can drive you to bankruptcy.
- Consider the number of properties they’re managing. If it seems they have too many on their books already, move on to another candidate.
- Make sure whomever you hire agrees to do on-site inspections.
- Do they own rental property themselves? If so, it can be a red flag. It’s human nature to take care of their own property before they see to yours.
- Do they have experience using an automated tenant management system? If not, are they willing to learn?
- Check references carefully. It is through former employers and tenants that you can learn whether a potential manager is likely to do a great job.
Article: Property Owners Leave Ordinary in the Dust Desert Ridge Phoenix Homes
Provided by: Luxury Valley Homes | Desert Ridge Phoenix Homes