Evaluating Property Managers

[Jorge Abreu]

First things first, when assessing property managers, it is crucial to prioritize their ability to collect rent and manage delinquencies. I care about collections, not just bodies in the building. Many property managers tend to focus on physical occupancy rates, but what truly matters is the economic occupancy rates—the actual rent collected. Don’t be fooled by high occupancy numbers if people aren't coughing up the dough on time. Keep an eye on those delinquency rates and ensure that the property manager is proactive in rent collection.

Maintaining open lines of communication with property managers is also part of the process. Regular and transparent chitchats are the way to go. You want to stay in the loop, know what's happening at your property, and address any concerns pronto. No ghosting allowed here! And hey, why not spice things up? Create a bonus structure that gets those managers pumped to perform. Give them a little extra motivation to maximize property income and keep things running smooth like butter. This way, they’ll have a vested interest in maintaining high standards of management.

To truly understand property dynamics and support the management team, I recommend spending time on-site. By being physically present, you can gain valuable insights into the property's operations, interact with residents, and assess the team's performance. This fosters a top-down management approach that ensures accountability and efficiency throughout the property.

As I've earned from my own experiences, the difference between a good operator and a poor one lies in effective asset management. Don't solely rely on third-party management companies; instead, focus on building a solid asset management plan and, if needed, bring in experts or partners who excel in this field.