4 Crucial Steps To Picking The Right Property Manager
A lot of people underestimate the value of having a good property manager.
Yet we know that real estate investing is a marathon not a sprint, and within that long-term journey there’s bound to be some hiccups whether that’s with tenants, maintenance or managing rental increases.
The right property manager takes the stress out of owning real estate and ensures your investment continues to create wealth as the property matures into the future.
It’s extremely important that you employ the right person for this very important role.
With that being said, here are my four best tips for choosing an excellent property manager:
FIND AN AGENCY THAT SPECIALISES IN PROPERTY MANAGEMENT
Generally, a company that specialises in management alone will be more focused on your property as a whole.
This is because a traditional real estate agency first and foremost deals with the sourcing, purchase and settlement of a home. While many do have a property management department, it is typically a secondary service and not delivered at the same standard to that of a dedicated management offering.
In fact, if you stay on with a real estate agency as an investor you will likely have no say as to who will take on your property, their experience, skill level or interest in growing your wealth.
Alternatively, a dedicated property management firm not only has the expertise and training to look after your assets, but the right person will also actively work to grow the value of your investment.
INTERVIEW PROPERTY MANAGERS TO EVALUATE THEIR EXPERIENCE
It feels like a tiresome thought to consider a person’s age in a decision like this, but it can be worthwhile interviewing potential property managers to determine their level of maturity.
The fact is, a younger person will have less experience in the role and may also be using it as a stepping-stone to becoming a sales agent, so it’s up to you to decide whether that is a good fit for your investment.
Additionally, don’t be afraid to ask for references or any feedback they have received from other clients. At the end of the day, it’s easy to change property managers, so don’t feel like you’re locked in with someone who doesn’t provide the best service for you.
CHECK HOW MANY PROPERTIES THEY ARE CURRENTLY MANAGING
Ensure your manager is not maxing out already with the amount of properties they are looking after.
A good number for an expert property manager would be 100 – 120 properties. Once they start going over, their ability to provide a top service slowly starts to decline.
The truth is anyone with over 150 properties should ring immediate alarm bells no matter how good they are. Their ability to dedicate time and resources to you as a client will ultimately be substandard.
DON’T SKIMP ON FEES
It’s tempting to try and get a discount on this aspect of your investment considering the money you’ve already put into it – but remember you get what you pay for.
For you as a property investor, expect for the fees to sit around seven per cent depending on the State you’re in. This shouldn’t be enough to break the bank, and if it is, you need to have an urgent chat with your financial adviser.
Know that the best property managers are worth every cent. They are the caretakers of your investment, and when they do a good job you are the one who will reap the rewards.
THE RIGHT PROPERTY MANAGER WILL BE BY YOUR SIDE FOR A LONG TIME
The relationship you have with your property manager will be one of the closest you have as an investor. Look after them properly and they in turn will look after you.
If you’re struggling to find the right property experts to work with you to grow your portfolio, then we’ve got you covered.
Learn what you should expect from each expert in your circle and discover tips on how to choose the best people for the job. Find out more here.
By Jason Whitton
Group CEO Positive Real Estate