Hiring a great property manager can be tough. Many people make the mistake of not taking the time to think about the qualities that make up an ideal property manager. Some people make the colossal mistake and hire a property management company and trust them to assign a property manager to their property. Others do slightly better and are introduced to their property manager but the real estate owner(s) treats the meeting more like a “meet & greet” than an interview of someone who may to protecting their most valuable asset.
Managing real property is not easy. It requires a broad knowledge which includes, but is not limited to: understanding building components, managing building staff & third party vendors, knowledge of insurance & claims, knowledge of finance & accounting, providing quality customer service, organizational skills & time management.
Before you make the decision to hire a property manger there are four key areas where you and the candidate should be aligned.
(1) What Does the Property Manager Specialize In? – Property Manaers are no different than any other professionals. They all possess key strengths and have areas where they can improve. Your job as a real estate property owner is to match the property manager’s strengths with your real property needs. For example, some property managers have a mechanical or engineering background, others are excellent communicators and coordinators of personnel, others great marketers. Know what your needs are as a property owner. If you are a board member of an aging condominium you may prefer a property manager with more capital projects experience. Conversely, if you owns a rental property you may prefer a property owner with extensive vendor contacts and cost management experience to maxi,Ive your return on investment.
(2) Experience & Access to Resources – As stated above, no one can have an endless depth of knowledge on all areas of property management but your property manager should have access to resources where he/she can quickly prevent or resolve problems that will occur. In larger property management companies there may be many internal resources. In smaller companies the property manager may rely on vendors or external colleagues to get information they lack. Either way ask the question, “if something goes wrong outside of your core knowledge what do you do?”.
(3) What Processes Exist? – Every well run property management company should not only have an internal process for managing their business but must also have a process for managing your real estate. As a real estate owner you must ask the questions and understand what is the property manager’s process for handling complaints, emergencies, vendor bidding, paying bills, staying on top of real property laws, etc? What about the internal control processes of their business? How do they monitor the quality of the property managers work? What financial internal controls exist to prevent fraud?
(4) Personality Is Imporatant – Never underestimate the power of personality. This is not just a matter of liking your property manager but having your tenants/residence and you like your property manager. Never commit to a property manager without a face-to-face or video conference meeting. What type of greeting do you receive? Was their appropriate eye contact? How many “please” and “thank you(s)” do you hear? Manners go a long way in deescalating issues. They also build trust.
If you don’t have prior property management experience the ability to determine the skill level of a property manager can be challenging. As an owner you need to know what type of property manager you’re looking for. Don’t make the mistake of treating a property manager like an employee. They are your vendor and the really good ones will act like your partner..
4 Things to Know Before Hiring a Property Manager
