Poor property management costs you more than you think.
There is more to good property management than a roof that doesn’t leak. Most property managers tend to think that business is good as long as there’s a roof over the property and the tenants are still put. They don’t consider that it might only be a matter of time before the roof starts caving and the tenants start vacating. These are poor mangers and you should avoid working with them at all costs.
Below are the red flags to look out for in property management companies:
Lack of Support
You should be cautious of property managers that are not supported by other management professionals. Because it means that when the manager is away no one is left looking after the property.
Lack of Repair to Property
This is quite obvious. If a managed property is not in good condition then someone is sleeping on the job. Ensuring a well-maintained property is the work of the property manager. It follows that a delay in repair means there is some negligence on the part of the management.
Constant Disputes May Get Ugly
Building a good relationship with different parties is the first step to the success of the property management company. Constant disputes with the landlord, tenants or vendors and any other parties could mean that the company is not doing its job correctly. A property manager should act as a mediator in disputes, rather than being the cause of the dispute.
What about expectations? What do they expect from you? Can you provide it? If the answer is “no” then it’s time to explore other options. The company should meet your expectations as you meet theirs. If one side is heavier and there is no sign of a common ground then the relationship won’t work.
Too Much Control
What is the first impression when you meet the manager? Do they give you a chance to talk or do they exercise total control over you? If they are too much in control then you might need to reconsider a working relationship with them. The property owner should have a say in the way his property is managed.
Stagnant rent prices are a bad sign. Rents should be rising in times of economic rises and even dropping it times of economic downfall, to ensure maximum occupancy at all times.
As obvious as it may be, it’s important to note that tenants do not typically complain for no reason. If there are consistent, recurring complaints that are not addressed by your property manager, your tenants will likely lose patience and leave.
High Repair Bills
A good property manager will have quality relationships with trades people and maintenance professionals and therefore, are able to get you the best deal to minimize costs. Maintenance costs are expensive and can cut deep into some property owners’ profits. Property managers who do not consider costs to the owner are a poor choice.
Lack of Property Investor Qualities
The property manager should possess some skills that would qualify them as property investors. In this way they understand you best and are able to know what you want without having you explain it too much.
Has the company been sued on grounds of negligence? It is important to mind companies that have been sued before. This could help you avoid being their next victim. Again, you should conduct your own research to know why they were sued and whether it is an issue that could affect your relationship.
Not all property managers are created equal. At the end of the day, it is the responsibility of the owner to select the property manager that they think they can work well with. To ensure a long and mutually beneficial relationship, whilst ensuring consistent and long-term tenant occupancy, take care when selecting a good property manager.