What to Look for in a Property Manager
Almost 5 years ago to the day I set out on a mission to transform the property management industry.
Many of you know my story on my foray into the property management industry and to be honest, I’m sure many of you have gone through it as well.
The truth is MOST PROPERTY MANAGERS SUCK!
There, I said it, but it’s true.
I remember my own story and that’s why, 5 years later I have a management company and each day my team and I work to solving the pain points that individual landlords have.
The truth is actually simple, most landlords manage their properties not because they want to but because they have to. However, what if there was a better? There can be, but you have to know what to look for.
Here are 3 things you should look for when exploring the possibility of a property manager:
Be wary if a company isn’t willing to disclose a lot of information on their website. For example, do they state their pricing? One the first things you’ll want to know during your research is what price range you’re looking at. If a company makes this information hard to find or unavailable, this might be a red flag.
There are plenty of companies that list their management rates and fees on their website. Why waste time struggling to find your answers on a website for a company that doesn’t want you to have them?
The management contract needs to be owner-friendly as well. It should be easy to read and not too long.
Transparency is also important during the management period as well. You won’t want to feel like your manager isn’t telling you something important. You can reference reviews to see if this is the case. Former clients will likely comment on a lack of transparency if there was one.
2. Detailed Website
It’s crucial for property management companies to have a good website. We are living in the digital age and people want to be able to access the information they need in a matter of seconds.
There’s nothing more frustrating for a potential customer than searching the website for answers and not finding any. You should be able to easily find things like available properties, management services, and a contact page. You should also see if they have educational content, such as a blog or a FAQ page.
Their property listings should be detailed as well. Do they have clear photos and a video tour? Each property should have a good description and a list of included features or amenities. Pay attention to where they list their properties, too.
They should also have a detailed bio about their company and possibly a list of team members. People often want to know who they’ll be working with when they’re hiring a company. A company that has this information on their website wants you to have all the facts before you sign.
Good Reputation & Reviews
In this day and age, reputation is highly important in the property management industry. Because of the saturation of property managers in each city, a poor reputation can quickly affect the amount of business you get.
Many people hear about property management companies through word of mouth. Ask your friends, fellow investors, and coworkers who should manage your home. You can even ask real estate agencies if they have recommendations. Good property management companies likely work with real estate agents to gain relationships with potential owners.
Another thing to check out is the company’s reviews. Google Reviews are extremely important. When someone has a bad experience, they leave a review. When someone has a great experience, they leave a review.
Pay attention to the number of reviews a company has. You might see a 5-star company, but upon further examination, find that they only have three reviews. The more reviews a company has, the better idea you can get of what people actually think of them.
If they have bad reviews, do they respond to them? This is something that can make great property management companies stand out. Thoughtful, genuine responses to unhappy customers can make a big difference, oftentimes resulting in an updated review. At the very least, it shows that these companies care about each customer’s experience.
In addition to bad reviews, check out the good reviews. What makes this company the best? Is it their great communication? Their quick turnover process? Chances are, people that had a great experience will make it known.
A good property manager should also know their numbers. This shows that they’re organized and keep track of their properties efficiently. Common numbers they should know are:
- Average length of tenancy
- Days on market
- Rent for each area
- Cost to make the average home rent-ready
- Number of leases signed per month
- Vacancy rate
These are all things you’ll want to look at when researching property management companies. Finding the right company that both fits your needs and has the experience necessary to take care of your home can be difficult, but we hope this article helped you in that process.
If you need help finding your next property manager, feel free to download our free report here. We’re always here to help!