7 Common and Costly Mistakes when choosing a property manager
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You have a vacation home, a second home or maybe you have just inherited another home and instead of selling in you decide that you want to rent it out, so you go and hire a property manager. Now is the time you find a few surprises just waiting for you.
The fact is that there are a number of property managers today that are not professionals. They may have some form of experience in management, however it may not be in the type of property that you have; it could be that they will not take the job seriously or they may even give someone else the task of taking care of your property, as is the case when they manage multiple locations. So what can you do to be sure that your property manager is the correct one for your needs?
Start by watching for these seven common problems with some property managers.
1. LACK OF COMMUNICATION: Screen for this by asking for references from each property manager you interview. A property manager who does not communicate with you at least a few times a year, and more often at the beginning and end of any rental period, is likely to cost you more money and time than managing the property yourself.
2. LACK OF ACCOUNTABILITY: Does the property manager have a good reputation that needs to be kept that way? Is he or she bonded? Is he or she a licensed real estate professional? If the person you select as your property manager has nothing to lose, they really have no incentive to manager your property well.
3. OVER PROMISING: You need to watch out here. Most property managers will usually have a standard of things they do. Is your potential property manager making promises that are way outside what the others offer? This is not a good sign as they are promising things just to try and get the job.
4. TREATING YOU LIKE A NUMBER: Property management companies that don’t guarantee you a specific property manager, who you meet yourself, are likely to treat your property as just another number. You want a single property manager or small company with a small management load to ensure your property is given proper attention.
5. NO EXPERTISE OR EXPERIENCE: To avoid problems you want a property manager that specialises in the type of property you have. You don’t want a person who’s used to dealing with office complexes trying to rent out your mountain get-away. They also need to have a good track record for managing their own properties as well as others.
6. NO RESPECT FOR YOUR CLIENT, TENANTS OR YOU: This actually goes along with being treated like a number, with some slight differences. How do the prospective property managers make you feel? Do you feel positive about them? Do they give you the respect that you deserve? If not then they may not be a good choice, because they will treat your clients and tenants the same way. You can test this be seeing how attentive they are to you. Do they allow you to ask questions and then answer each with equal importance or do they tell you what they want you to hear and not give you a chance to ask anything?
7. COMPLACENCY WITH TENANTS AND YOUR PROPERTY’S MAINTENANCE: You really want a property manager that will be not just active, but proactive, when renting your property and caring for it. Ask about their vacancy percentage and their turnover rate. Both numbers should be very low.
Remember that you should interview and screen any property manager that you are considering for all of the above issues. You need to have a manager that is experienced, professional and proactive; one that will treat your property as if it were their own and keep in touch with you on a regular basis. You will find that a good property manager will increase your revenues while saving you time and stress. They will turn your property into an asset instead of a liability that it could become in the wrong hands.

August 20th, 2008 at 4:46 am
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