Renting out properties is how you make your living, so why leave your properties at the hands of a bad property manager? After all, your investments are on the line.
A good certified property manager will be able to provide you with regular maintenance and repairs for your building, which will make owning these houses more time efficient for you.
Along with a trained and certified property manager, a good property management company should be able to lower your monthly energy bills by up to 50% by making simple yet effective upgrades.
So if you want to experience instances like this, here are a few ways to tell a bad property manager from a good one.
- If they haven’t been in the business for very long, this should be a major red flag for you. Chances are they haven’t been in the industry enough to make good decisions.
- If their current vacancy rate is above average, just go ahead and expect this trend to continue for this particular property manager. Make a list of property management companies who have high vacancy rates so you can be sure to avoid them.
- If they don’t have their own maintenance crew on hand, or if they are calling in their buddy to fix your leaky roof, move on.
- If they take care of different kinds of properties (apartment buildings, condos, business buildings, etc.) this means they are not specialized, and chances are you will not be happy with their maintenance work. All property management companies should state when types of properties they specialize in maintaining.
- No matter if they are a professional certified property manager, if they still have to evict tenants on a regular basis, this means they aren’t good at initially screening them.
- When asking about their property management fees, make sure it is within reason. If you own a lot of properties, the fee may be a bit lower because you are paying for more houses. The fee should generally fall around 10%.
- This one is a no-brainer to check for, but if you find a property manager with no certifications, don’t walk away — run! With plenty of property managers scamming landlords these days, don’t settle for anything less than a professional certification.
You don’t want to make the bad investment by choosing a lousy property manager; this could cost you a lot of money down the road that could prevent you from further expanding your rental business. You have every right to scrutinize and interview before hiring. Helpful links.