If you buy residential or commercial properties and then rent or lease them out to tenants, then you probably need to utilize the services of a property manager. If you have one or two properties, then you can handle those management tasks on your own. But if you are an investor who likes to keep adding properties to your portfolios, then you will want to put a good property management company in place to maintain your properties and handle your tenants.
Why do I need a Property Manager?
With any kind of property, things go wrong that need the owner’s attention. If a tree is threatening to fall on a neighbor’s property, then the tree needs to be removed. If the ceiling collapses in a commercial property, then it needs to be repaired. Investors who own multiple properties could never have the time to do all of the management tasks required to keep buildings safe for tenants, and in compliance with the building codes.
Property managers also act on behalf of the investor to keep tenants happy. When an investor is trying to rent or lease properties, the reputation that investor has for managing properties will be an important part in the tenant’s decision making process. A good management company will preserve an investor’s reputation and make it easier to lease properties for top dollar.
Be Prepared to Interview
An investor should take the process of finding a property manager very seriously, and be prepared to do comprehensive personal interviews with every management candidate. The investor should prepare a list of questions that pertain to issues the investor deems important, and ask the same questions of every candidate.
Do a Reputation Search
If an investor knows other real estate developers, then it is possible to get referrals for property managers from those developers. Every property management candidate should go through a reputation search that can easily and quickly be done online. An investor can hire a professional agency to do a reputation search, or they can do the search themselves.
A reputation search consists of collecting data such as a background report, a Better Business Bureau rating, and any kind of ratings from websites that are used to refer service companies. An investor can also search social media and the Internet in general to see if there are any comments made by former or current clients that can help the investor to make their decision.
Check Their Qualifications
An investor should check with their attorney to see if property managers need to be licensed in their state. If a license is required, then an investor should ask to see that license before hiring a property manager. The better property managers also go through the process of being certified by industry organizations that recognize companies that adhere to strict quality guidelines. Even if certifications are not mandatory in your state, you should still look for property managers that take the time and effort to become certified.
A good property manager is essential to the long-term success of any real estate investor. An investor might choose to have separate property managers for their residential and commercial properties, or choose to have one company overlooking all operations. In either case, it is important to find a property manager that an investor can trust to maintain their properties and develop a high level of customer service among tenants.