8 Tips for Hiring the Best Property Manager
8 comments so far
Even though I have already written the next post, for my calculations of the first year returns on my 2 properties (in Las Vegas and Phoenix), it happened that I am changing again a property manager in Las Vegas. When looking for a new one, I have read my old posts to remind myself what I should be asking them, but also I have read this good article at Biggerpockets blog. It can help you guys, who will need to find a good property management company for your investment property.
1. The first thing I always want to know is how many properties (units is a better measure) are they managing. This is followed up with how many employees are managing these units. Here is what I have found based on our experience building our property management capability internally and then handing the entire portfolio over to property managers: a trained employee with the right tools and proven processes can manage between 30 and 40 units – assuming the accounting function is not included. So, if you are qualifying a property manager and they have no employees and are currently managing 37 units and you want to hand them 7 more, how good do you think their service to your portfolio will be?
2. Do they own any rental properties themselves? For me this can be a deal breaker! Here is what I have experienced: while it may seem like a benefit for a manager to own properties because they can better relate to what an investor experiences, I see it differently. The way I see it is my properties and my tenants are in constant competition with the managers and their properties. If the manager has a vacancy at the same time you do, how can you know that your property will be filled first? You don’t!
3. A critical component in managing both properties and tenants is getting into those properties on a routine basis. As part of your discussions with prospective managers, you want to get a commitment from them how often they will conduct formal inspections of your properties. In some cases, managers will be very accommodating. In most, however, they will balk at this requirement or use it as a way to increase the fee they will be charging. I am not too impressed with property managers who believe that conducting routine property inspections is an extra – not part of their normal package of services. I would be very leery of this type of property manager.
Continue reading here:
http://www.biggerpockets.com/renewsblog/2011/02/25/hiring-best-property-managers/
Friday, May 6th, 2011 at 8:44 pm and is filed under General Education. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
Remarkable details! I have been looking for anything such as this for quite a while finally. With thanks!
its always necessary to hire a property manager .the manager protects your interests and alerts you to any potential problems.
If a property manager team is managing more than 37 units than hiring them to manage your property also is a right decision?
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Property manager helps you to protect your interest and profit which you are gaining so always hire a property manager and be secure.
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Very interesting points you have mentioned , thankyou for posting .
As a contractor, I address some of these issues are a regular basis thanks for making sense!