Is it time to upgrade your property management?

[Adrien C.]

I love the annual ritual of spring cleaning because it gives me an opportunity to take inventory of what I have and decide to keep it or toss it. (It also helps me toss the random junk my 4 kids have collected over the year LOL).

Have you ever taken inventory of your property management situation? Most investors I speak with don't think about it and just go with the flow. That's crazy because you're trusting someone to manage some of your largest assets and I've seen some bad managers in Northwest Indiana - heck, I fired 4 before I started my own company.

What should you be looking for in a property manager?

#1 Integrity- Whether you're out of state or local, you've entrusted your property and finances to someone else. This is a big deal. Is the person who manages your properties honest? Look at your monthly ledger. Do you have a pattern of repairs being done. Does it seem odd the turnkey property you purchased has work orders every month- sometimes the same stuff over and over again. Have you asked for receipts and pictures to prove it was completed? Are they charging you for new items but using recycled stuff they took out of another house? Seems crazy but I've seen this done often by certain managers.

#2 Customer Service- Let me correct myself from a previous statement I made earlier. Your property is not your largest asset. Your tenants are your largest asset. Without good tenants who pay on time and take care of your property, the property is a liability and money pit. Does your manager truly value your tenants and treat them respectfully? Or are they just a paycheck and annoyance when they call with an issue? Why does this matter? Well, tenants who feel respected and appreciated pay on time, take better care of the property, and stay longer.

#3 Growth- Is your manager helping you grow your portfolio or optimizing what you currently have? Is your manager involved in personal and professional development so they can be up to date with current state regulations and new technology? Managers that are growing and adapting their processes to the changing times are going to be more efficient as well as more knowledgable thus saving you money and reducing your liability.

#4 Proactive- Does your manager wait for stuff to happen or do they have processes to catch stuff before something small turns into something big? I had a property manager not step foot in my property for 3 years while the tenant was there. A dripping p-trap which is a $5 fix turned into a $5K bathroom gut. This could've been minimized if the manager did inspections and regularly communicated with the tenants. Is your manager working 30-60-90 days out so when a lease expires, they are ready to turn that unit quickly? Vacancy is the #1 expense in rental properties.

Share what you love about your current PM and maybe something they could do better.