There are many types of landlords. You might be an accidental landlord, forced by the market or the military to make this choice for financial reasons. You might be a weekender landlord, someone who has one or two houses they inherited or purchased for some ancillary income to travel or save. You may be a realtor who is building their retirement fund and buying one rental property a year but doesn’t want to self-manage. You may be an investor who flips homes and keeps the rental market in their back pocket in case the market dips or one who takes advantage of the ever-popular BRRR method of wealth building (Buy, Renovate, Rent, Refinance) Or maybe you are a high-level landlord who owns many rental properties or multifamily units.
Whatever your current situation and differences, there are some main things to look out for in a property manager to make being a landlord a pleasant or at least a financially responsible and profitable experience. Here are some important characteristics and policies to look out for when selecting your property manager for your property.
Communication
A smart property manager knows that communication is key for tenants and landlords and most issues are created from the lack thereof. If a tenant puts in a service request and doesn’t receive a response, liability can be created. If a homeowner hasn’t been paid and wants to know where their money is without a clear response, that can create trust issues. You definitely want your property manager to be accessible to respond to these concerns and be someone who provides clear communication on expenses and expectations going into the rental commitment for both sides of the transaction.
Relationships
The best renter experiences are built on relationships. Tenants want to feel like they matter. It is already stressful for tenants to find a home and go through credit screenings and background checks and then pay thousands of dollars to get into the home. After they have jumped through all of those hoops, they don’t want their service requests to be ignored or to feel like the property manager is their enemy just looking to notice or fine them. Without renters, landlords would be in big trouble and a good renter is worth their weight in peace of mind and profit! Finding a property manager who can facilitate that relationship with your qualified renter can mean less turnover expenses, a larger rental increase at renewal time, and peace of mind that your investment is being inhabited by a respectful human.
Cat-Like Reflexes
Property Management is not for the weak or faint at heart. You should choose a property manager who is a problem solver with a quick response time to ensure the lowest liability risk for you and your property. New situations that have not been experienced before happen all the time when you are dealing with the public. If your property manager can hypothetically fall off a building and land on their feet, chances are good they are the one for you.
Knowledge
Your property manager should be a jack of all trades. To successfully rent and maintain a renter, you should know how to assess the market for the best rental rate, how to advertise and market the rental property for maximum exposure and reduced vacancy loss, how to screen tenants in a way that doesn’t make them feel like criminals and keeps them excited about moving in. They should also know enough about maintenance to recognize what repairs are emergencies and which ones can wait, when a vendor is attempting to take advantage of you, and where to find the best and most affordable vendors that will get the job done and not have to come back. This is addition to the expected move-out procedures, local laws, and what to do if your renter doesn’t behave or pay the rent.
A Good Attitude
A property manager with a good attitude and even a sense of humor can really make the difference in the enjoyment of your landlord experience. Tenants and vendors alike respond well to a good attitude, and this can result in better tenants, better prices, and more efficiency in getting things done. A property manager with a good attitude is also more approachable and tenants will be more likely to share issues or concerns they are having if they think solutions may be available as opposed to feeling judged or shamed if issues come up.
Conflict Resolution
In addition to a good attitude, you’ll also want someone who is well versed on conflict management. Things don’t always go the way we plan and when that happens, the right person can find a solution and get both parties on board to keep the train moving and prevent communication breakdown. It is important to have a property manager that is not afraid of conflict and will embrace it when needed. You want someone like mom, kind when you are doing what you should do, but not afraid to tell you what’s what and what the consequences are if you aren’t.
In summary, finding the right person for the job takes some dedication but the results are worth the work! The right property manager will eventually pay for themselves in knowledge and increased profit year over year while the wrong fit will drive away good tenants and result in property and profit decline over time.
Did I miss an important characteristic of the right property manager? Tell me in the comments below and keep an eye out for my next post on Common Mistakes Made by Managing your Own Property!
