What do investor look for in a property manager

[Mike Fontaine]

Hello everyone! I was hoping to start a conversation. It has been a statement that I continue to hear all over the place,"it is really hard to find a good property manager." As my business as a property manager starts in MA I wanted to reach out to the investors that are either considering using a manager or are using one currently. What are the services and practices you are looking for that makes a manager "good". Also on the other side of the coin what are some of the horror stories that make a manager a "bad" manager.

[Nathan Gesner]

I'm a property manager but prior to that I had investment property managed by someone else that was mediocre and bare-bones in what they provided, so my opinion still counts a little.

1. Communication. I don't want to baby-sit my manager but I also don't want to be completely in the dark. Basically, I want to know two things: 

• When is my income stream going to be interrupted?
• What condition is the property in so I can project upcoming CAPEX?

A monthly income/expense statement is sufficient knowledge when things are running smooth. If a hot water heater goes out or my tenant gives notice and I'm facing interruptions to my income stream, I would like a quick email so I'm not caught by surprise when the statement arrives.

2. Maintaining the value of the property. A good manager will maintain the property but I also understand no system is perfect. They may allow the lawn to degrade a little or they may not be Johnny-on-the-spot with the grease stain in the garage. Those are minor issues that can be corrected before I sell or with periodic maintenance. If the lawn is trashed and costs me $3,000 to fix then we have a problem. If there is evidence the property manager has not been holding tenants accountable for damages, then we have a problem. But I don't cry over small potatoes.

3. Reduce my workload and stress. The only time I want to think about my investment property is when I am bathing in the many gold coins accumulating in my vault. Seriously, I don't want to have to study the market to determine a rent rate. I don't want to choose tenants. I don't want to discuss whether the tenant is allowed to paint (they aren't) or what to do if the rent is late, etc. A good manager has processes in place and I want to give them authority to handle it so I can spend more time bathing in gold coins.

This is the same goal I have for the people I manage for:

1. Protect the investment

2. Protect the income stream

3. Protect their time