Good Vs Bad Property Managers
As the saying goes “A good property manager is the key to success in real estate”. But how do you know if you have a good property manager? While there’s no way to accurately predict the outcome of a rental property or even the quality of a real estate agent with 100% success, there are a number of factors to consider when assessing GOOD versus BAD property managers. In this article, we’ll give you our proven tips for finding the absolute best property manager, and a couple of strategies to weed out the not so great ones.
Property Management Systems and Procedures
Good property managers must use systems and processes to be effective. Examples include a renewal system, leasing system, maintenance system, and there are countless more. A good property manager takes time to explain how they use systems and procedures to effectively manage your investment. If they give you vague and general answers such as “we rent your property” or “we have a great maintenance process” they likely either don’t understand exactly how they operate or even worse, they are just a salesperson trying to win your business.
I recommend you use Google to find out from property owners (and tenants) their experience, and the outcome for owners’ investment properties. I suggest you take time to assess both the good and bad reviews on an agency and consider if the values shown in the reviews (and responses) align with yours.
Time – How many properties can a good property manager look after?
There are fantastic property managers who are time-poor. They do an amazing job, but only complete a portion of their workload. This leaves the inexperienced junior staff member looking after most of the jobs in your home. If you are unlucky, sometimes things are missed, potentially costing owners thousands of dollars.
Property management is one of the busiest jobs in real estate. All the leasing, renewals, and routine inspections can take up most of a property manager’s day. This means they are unable to deliver the absolute best service to you, the owner. When interviewing a potential property manager, it is essential to find out exactly how their office is structure. For example, how many properties do they look after, what support services, such as trust account administration, maintenance or routine inspection they receive. Ask what happens in scenarios such as if your property manager gets sick/takes leave, who’ll manage your property? Will other staff handle it and would they manage it the same way? It’s your right to know exactly what is going on with your property.
Quick Tip: Fees
Agencies that tend to have lower fees tend to manage more properties just to be able to make ends meet, so take that into consideration as well. Generally speaking, a good property manager will effectively provide high-end service to 80 properties.
Interpersonal skills of good/great property managers
Being a property manager not only means that you get to do routine inspections, leasing and renewals, but you also get to meet people from all walks of life. When working with such a variety of people, a good property manager adapts to the person they’re talking to. They know that every person has different styles and backgrounds, so a good property manager makes the person comfortable and communicates in a way that their customers will love. I highly recommend that you meet with the property manager and have a conversation about the things you want to know and do for your property. By doing this, you’ll be able to see how well they communicate, how their body language is, and also how their tone changes when conversing with you. After the meeting, analyse the overall feeling you had when you were talking with the property manager. Does it pass your vibe? Did it make you comfortable or welcome while talking to them? Remember, it’s important to feel comfortable and you can trust your property manager. If you’re feeling is negative, it is most likely that potential tenants, other owners, and even tradespeople feel the same way.
Questions to ask your property manager
Wrapping it up
- The property manager must know their processes and procedures, and be able to clearly explain them to you so that you understand how your property will be managed. Read about the experience of others before you commit.
- Being a busy or less expensive property manager doesn’t always equate to being better. Find out how many properties the property manager looks after. More than 80, their personal service may reduce. What happens if your property manager takes time off, who’ll manage your property in their absence? You want to be assured your property is going to be managed effectively.
- Take time to meet the property manager and gauge how you feel when talking with them. Do you feel assured in their abilities to look after your investment? Also imagine how other people dealing with the property manager might feel. Make sure you feel comfortable and can trust your property manager.