What to Look for in Property Managers
Many people manage their own rental properties. However, depending on your circumstances this might not be the best use, financially, of your time. Enter the services of a property manager—an individual or company who takes care of everything to do with the smooth running of your tenancies.
However, as in every industry, there are widely differing levels of service. This means that whether you’re a first-time landlord with a single property or have an extensive portfolio, picking a property manager should follow a strategic and carefully considered selection process.
From Experience to the Legalities: How to Choose a Property Manager
- What do property managers do?
- What type of property (or properties) do you have?
- What to look for in property managers: from Airbnb to finding long-term tenants
What do property managers do?
Property managers can be individuals serving a few clients or companies that service hundreds or thousands of properties. Whatever the size, they’re responsible for various elements of property management, including:
- Marketing the property.
- Showing the property to prospective tenants.
- Screening applicants and carrying out the relevant pre-tenancy checks.
- Drawing up the legal documentation and tenancy agreements.
- Collecting rent.
- Performing property inspections.
- Maintenance coordination.
- Communication with tenants.
- Paperwork, documentation, and reports.
And, in the case of vacation rentals:
- Check-ins/check-outs.
- Cleaning the property between lets.
- Being on hand to answer questions and queries.
What type of property (or properties) do you have?
The requirements of a vacation property manager are different from those who service long-term domestic rentals or commercial property. It’s important that the provider you choose specializes in the type/s of property that you have.
By far the most important factor of what to look for in property managers is relevant and current experience in your type of investment properties. A commercial portfolio, for example, has different requirements to an Airbnb empire or a suite of BRRRR properties.
What to look for in property managers: from Airbnb to finding long-term tenants
After narrowing down your search to property managers who specialize in your type of property, be sure to:
- Ensure that they understand federal, state, and local property laws.
- Double-check their training, qualifications, credentials, and licenses.
- Ask about their insurance.
- Check out their reviews on Google, Yelp, social media, etc.
- Question their local knowledge—it’s a key requirement that your property manager is familiar with the area.
- Assess their physical and online advertising.
- Ask if they use up-to-date technology for ease of record keeping and reporting.
It’s also wise to speak to other investors and get their opinions of the property managers you’re considering. You’ll also want to compare key pieces of information—the following data is easy to glean from the property manager’s website:
- The services they offer.
- The fees they charge.
- All relevant contact information.
- Tenant and landlord reviews—if, of course, they come from verified sources.
Once you’ve narrowed down a shortlist, test each candidate with some very specific questions—all of which represent some worst-case scenarios. These include:
- How do you deal with an eviction?
- What strategies are in place to minimize the time a property is vacant?
- How do tenants get in contact with you in an emergency (including out of hours)?
- What would happen if there was unexpected damage to the property—either by natural or unnatural causes?
A careful, considered approach to selecting the best property manager is key to ensuring that your real estate investment returns the best possible yield.
Need Financing for Your Property Portfolio? Contact BRRRR Loans Today
As well as what to look for in property managers, how you access funds to purchase investment property is critical for your long-term efforts. BRRRR Loans is a leading financier that’s helping thousands of people across the US to realize their real estate dreams.
Find out more at https://www.brrrr.com
Buy, Rehab, Rent, Refinance, & Repeat. A nationwide direct lender to real estate investors. If you have a project that needs to be funded, you’ve come to the right place.