Managing Your Property
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 2 years ago, 08/18/2022
What makes a good property manager (PM)? What makes a bad one?
I'm one year into having a property manager take over one of our properties, it's mainly great because that income is now (almost) truly passive - probably requires less than 1 hr of time each month.
However, my PM seems to have had a bit of trouble scaling. I'll ask for them to do something (HVAC tune-up, turn off exterior water before winter, etc) and, while they'll initially acknowledge the email, I usually have to follow up multiple times to confirm the task is completed.
Is this a pattern with most PMs? What are your general expectations of a PM and when/how do you generally know it's time to look for a new one?
I'm trying to gauge if I'm being too type A and need to let go a bit, or if I'm underestimating what a PM should do.
Did you interview multiple PMs before you landed on this one? Kind of like insurance, it's not a bad idea to interview/get quotes every couple years to see if someone is better/different. The main thing is expectations. These should be set up front by you and the PM. If the PM said it would take a week to confirm that something's been done, then that's what you can expect. If not, then it's wide open.
Quote from @Joshua Stein:
I'm one year into having a property manager take over one of our properties, it's mainly great because that income is now (almost) truly passive - probably requires less than 1 hr of time each month.
However, my PM seems to have had a bit of trouble scaling. I'll ask for them to do something (HVAC tune-up, turn off exterior water before winter, etc) and, while they'll initially acknowledge the email, I usually have to follow up multiple times to confirm the task is completed.
Is this a pattern with most PMs? What are your general expectations of a PM and when/how do you generally know it's time to look for a new one?
I'm trying to gauge if I'm being too type A and need to let go a bit, or if I'm underestimating what a PM should do.
If they are responding and actually doing it then I would say that is pretty good. They always say the squeaky wheel always gets the most help.
I started looking for more help when my PM did not inform me that my tenant was not paying rent for 3+ months. I asked if they had posted an eviction notice and they responded no the tenant is going through a hard time. Everyone goes through tough times... I switched PM's and now I know that if that happens again they are right on it. They get things done and I do not have to worry about it. I get my passive income every month and I am a happy camper.
Quote from @Steven Foster Wilson:
Quote from @Joshua Stein:
I'm one year into having a property manager take over one of our properties, it's mainly great because that income is now (almost) truly passive - probably requires less than 1 hr of time each month.
However, my PM seems to have had a bit of trouble scaling. I'll ask for them to do something (HVAC tune-up, turn off exterior water before winter, etc) and, while they'll initially acknowledge the email, I usually have to follow up multiple times to confirm the task is completed.
Is this a pattern with most PMs? What are your general expectations of a PM and when/how do you generally know it's time to look for a new one?
I'm trying to gauge if I'm being too type A and need to let go a bit, or if I'm underestimating what a PM should do.
If they are responding and actually doing it then I would say that is pretty good. They always say the squeaky wheel always gets the most help.
I started looking for more help when my PM did not inform me that my tenant was not paying rent for 3+ months. I asked if they had posted an eviction notice and they responded no the tenant is going through a hard time. Everyone goes through tough times... I switched PM's and now I know that if that happens again they are right on it. They get things done and I do not have to worry about it. I get my passive income every month and I am a happy camper.
So, you were paying your mortgage for this property directly, and the PM was sending you a check each month (or lack thereof) for three months before they informed you?
Quote from @Collin Wallace:
Quote from @Steven Foster Wilson:
Quote from @Joshua Stein:
I'm one year into having a property manager take over one of our properties, it's mainly great because that income is now (almost) truly passive - probably requires less than 1 hr of time each month.
However, my PM seems to have had a bit of trouble scaling. I'll ask for them to do something (HVAC tune-up, turn off exterior water before winter, etc) and, while they'll initially acknowledge the email, I usually have to follow up multiple times to confirm the task is completed.
Is this a pattern with most PMs? What are your general expectations of a PM and when/how do you generally know it's time to look for a new one?
I'm trying to gauge if I'm being too type A and need to let go a bit, or if I'm underestimating what a PM should do.
If they are responding and actually doing it then I would say that is pretty good. They always say the squeaky wheel always gets the most help.
I started looking for more help when my PM did not inform me that my tenant was not paying rent for 3+ months. I asked if they had posted an eviction notice and they responded no the tenant is going through a hard time. Everyone goes through tough times... I switched PM's and now I know that if that happens again they are right on it. They get things done and I do not have to worry about it. I get my passive income every month and I am a happy camper.
So, you were paying your mortgage for this property directly, and the PM was sending you a check each month (or lack thereof) for three months before they informed you?
Yes, I just assumed all was well. Then I picked up on it because I reviewed my numbers and realized that they were off. I quickly called and asked what was happening. I know that might seem irresponsible for not realizing sooner although when you start to scale things can slip through the cracks. That is why if you have someone who is responding and being good at communication then that is pretty good. You live and learn!
Here are 5 Signs Of A Poor Property Manager:
1. Poor Communication
2. Failure To Keep Your Property In Top Shape
3. Failing To Comply With Local Requirements
4. Inconsistent And Late Payments
5. Too Many Tenant Complaints
If you are looking to change your property manager, be sure to do your due diligence and make sure they have all the qualifications required of them. As long as you know what signs to look out for, it should be easy enough to find one who is qualified.
Here are top 10 items to consider.
1. Cost V's Service
A good property manager will earn you money on your investment, while a bad one will cost you dearly. Engaging a good property manager is priceless. It may be worth paying a little more for a manager doing an outstanding job, rather than below value for one not worth anything.
2. Bad Communication
Lack of communication can cause major issues, including situations escalating to litigation before you are aware. Communication is important on all aspects of management from maintenance concerns to tenant selection processes. A simple concern like a faulty window lock can lead to major insurance costs. It pays to have Landlord Insurance in place for added protection.
3. Sloppy Service
You shouldn’t have to manage your manager. Particularly once your portfolio grows, it is not possible to constantly assess rental statements – that’s what you pay the manager for. The property manager should ensure rents are on time and take action when they are not. You should not have to step in and manage on your agent’s behalf.
4. Trustworthy
There have been occasions of dodgy property managers dipping into trust accounts. You must have trust in the people managing your property – if it doesn’t feel right, it probably isn’t.
5. Earning Their Fee's
Property managers should be completing regular inspections to avoid major issues developing. As discussed already, communication of these inspections and any items discovered is a basic requirement of good property management.
6. Licensed & Qualified
Always ensure any agent you engage has the required licensing and certification and is a member of relevant industry bodies, such as the Real Estate Institute of Australia. Also ensure their staff are trained and qualified to a satisfactory standard.
7. Market Awareness
Always ensure property rents are up-to-date with current rental market value. Good property managers will conduct regular market rental reviews and ensure the ‘right’ tenants for your property.
8. Poor Advertising
There are still some property managers with no website and no active advertising – this should set off alarm bells. Most decent property managers engage websites like realestate.com.au as a minimum. If they’re not, you need to ask yourself why they’re not spending the money to be a part of a significant lead generator for your property.
9. Where Do Their Loyalties Lie?
Is the Property Manager working on behalf of the landlord or the tenant? A good property manager must always have the interests of the landlord at heart.
10. The Right Advice
Overall, your property manager is responsible for ensuring the best possible rental return for your investment, so it is important they are able to provide the best advice for your property.
Good Luck!
- Wale Lawal
- [email protected]
- (832) 776-9582
- Podcast Guest on Show #469
- Real Estate Broker
- Cody, WY
- 40,332
- Votes |
- 27,406
- Posts
They're failing. Maybe they try really hard, but success requires more than just trying.
I would shop around for a property manager that understands the importance of proactive communication.
- Nathan Gesner
Quote from @Wale Lawal:
Here are 5 Signs Of A Poor Property Manager:
1. Poor Communication
2. Failure To Keep Your Property In Top Shape
3. Failing To Comply With Local Requirements
4. Inconsistent And Late Payments
5. Too Many Tenant Complaints
If you are looking to change your property manager, be sure to do your due diligence and make sure they have all the qualifications required of them. As long as you know what signs to look out for, it should be easy enough to find one who is qualified.
Here are top 10 items to consider.
1. Cost V's Service
A good property manager will earn you money on your investment, while a bad one will cost you dearly. Engaging a good property manager is priceless. It may be worth paying a little more for a manager doing an outstanding job, rather than below value for one not worth anything.
2. Bad Communication
Lack of communication can cause major issues, including situations escalating to litigation before you are aware. Communication is important on all aspects of management from maintenance concerns to tenant selection processes. A simple concern like a faulty window lock can lead to major insurance costs. It pays to have Landlord Insurance in place for added protection.
3. Sloppy Service
You shouldn’t have to manage your manager. Particularly once your portfolio grows, it is not possible to constantly assess rental statements – that’s what you pay the manager for. The property manager should ensure rents are on time and take action when they are not. You should not have to step in and manage on your agent’s behalf.
4. Trustworthy
There have been occasions of dodgy property managers dipping into trust accounts. You must have trust in the people managing your property – if it doesn’t feel right, it probably isn’t.
5. Earning Their Fee's
Property managers should be completing regular inspections to avoid major issues developing. As discussed already, communication of these inspections and any items discovered is a basic requirement of good property management.
6. Licensed & Qualified
Always ensure any agent you engage has the required licensing and certification and is a member of relevant industry bodies, such as the Real Estate Institute of Australia. Also ensure their staff are trained and qualified to a satisfactory standard.
7. Market Awareness
Always ensure property rents are up-to-date with current rental market value. Good property managers will conduct regular market rental reviews and ensure the ‘right’ tenants for your property.
8. Poor Advertising
There are still some property managers with no website and no active advertising – this should set off alarm bells. Most decent property managers engage websites like realestate.com.au as a minimum. If they’re not, you need to ask yourself why they’re not spending the money to be a part of a significant lead generator for your property.
9. Where Do Their Loyalties Lie?
Is the Property Manager working on behalf of the landlord or the tenant? A good property manager must always have the interests of the landlord at heart.
10. The Right Advice
Overall, your property manager is responsible for ensuring the best possible rental return for your investment, so it is important they are able to provide the best advice for your property.
Good Luck!
This is a great way to put it, and my PM falls on the good side of all of those items. I think they could be better in ways, but they definitely meet all the criteria you listed.
Reading a couple other replies it looks like things could be much worse
Quote from @Nathan Gesner:
They're failing. Maybe they try really hard, but success requires more than just trying.
I would shop around for a property manager that understands the importance of proactive communication.
Would you feel differently if I said that the PM costs 3.5% of my gross rent? Honest question.
It's a fixed cost, so doesn't scale with rent - maybe this doesn't really incentivize them to grow rental income though.
I'm trying to justify the delta of a new PM cost with how much I care about reminding them to do small things. All the large stuff (collecting rent, navigating tenant placement, paperwork/financials) is solid with them.
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 4,847
- Votes |
- 8,252
- Posts
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Joshua Stein curious as to why you having to ask them to do these things?
If it's something outside their normal processes, then not surprising that they are handling it poorly!
This should all have been negotiated and agreed to upfront and included in the contract you signed.
Perhaps you should make a list of everything you want them to do and negotiate to have it added to your existing contract. Of course, they may negotiate additional fees or refuse to do them.
Depending on their response, you can make a decision on how to move forward.
- Drew Sygit
- [email protected]
- 248-209-6824
- Real Estate Broker
- Cody, WY
- 40,332
- Votes |
- 27,406
- Posts
Quote from @Joshua Stein:
Seriously, I see so many Landlords say everything is great . . . until it's not. Maybe they're doing well at 3.5% but that's not paying any bills or making him a profit. It's only a matter of time before they screw up or get tired of doing the job for peanuts.
You can save 6.5% each month and in two years a mistake is made that could cost you $10,000 and eat up every penny of "savings" over the years.
- Nathan Gesner
@Joshua Stein - I’d start with two things
- ask them where the clog is. It could be that they are doing all they can but the contractors are backed up… yes, their vendor list should be able to accommodate delays by switching providers but sometimes waiting for that one that knows your properties inside and out is ok especially if it is not an emergency
- get your and their communication expectations aligned. Maybe you recently started feeling like you want more communication and updates. Maybe they are too busy, maybe something else. We are all humans and our needs and wishes change from time to time. Remembering to communicate those is important.
As a client, I am generally very laid back, trust the professionals that surround me and expect absolutely no communication unless something major happens and my input is needed. I do pay attention to reports and documents as they are sent to me.
As a professional I tend to overcommunicate until the client tells me to stop (that is usually the point where trust has been earned). And client needs do change from time to time and I just tell my clients upfront to tell me when they feel like more communication is needed. At that point, the level of communication gets cranked up until the client tells me to stop again. It is a never ending cycle!
3.5% is a steal. If they are charging all of their clients that, they are most definitely overwhelmed and you should think about either upgrading your level of service or getting more involved yourself. If you have a personal/ business connection there and are getting a discount for some reason that is a different story.
Yes @Joshua Stein like @Sergey A. Petrov and @Drew Sygit said above be clear and set expectations of what you want you should have a clear list of what you want and don't be afraid to upgrade your list as you learn more.
You have to as a professional follow up to the degree of service that you want. If you are ok with your contractor, supplier, PM, getting back to you in a week or a month when they remember or get around to it, then you can just wait but generally I find that if you want to get things when they said they would be done then you have to be the one to follow up and remind them to do their Job for you.
If you don't speak up then you are one of tens or hundreds. I have moved ahead of other permits, caught failed shipments, and gotten sub contractors to switch their schedules all from just giving a brief friendly check in 1-3 times a day or a week before I am expecting the given service or delivery.
Alternatively do all the work and research ahead of time and often pay more to get someone who will work hard to give you the service of being on top of everything for you. Set expectations and work hard up front so things go easier later.
I have been thinking of trying to offer other payment schemes to try to incentivize certain actions but i'm not sure a PM would like my suggestions. I would like to pay them less if the building is empty, and progressively more for every year they keep the same tenant in a door up to a relatively high against other market pay rates cap. Essentially trying to get the PM to work hard up front to select tenants that will pay on time and stay long term, above trying to fill with just anybody to get the move in bonus ive heard is sometimes used.
I'd rather the bonus was linked to long term stays
Quote from @Joshua Stein:
I'm one year into having a property manager take over one of our properties, it's mainly great because that income is now (almost) truly passive - probably requires less than 1 hr of time each month.
However, my PM seems to have had a bit of trouble scaling. I'll ask for them to do something (HVAC tune-up, turn off exterior water before winter, etc) and, while they'll initially acknowledge the email, I usually have to follow up multiple times to confirm the task is completed.
Is this a pattern with most PMs? What are your general expectations of a PM and when/how do you generally know it's time to look for a new one?
I'm trying to gauge if I'm being too type A and need to let go a bit, or if I'm underestimating what a PM should do.
What you've described sounds like probably most client/PMC relationships. What you're describing sounds to me like a problem with systems and probably not people. Usually, the people at the PMC want to do a decent enough job, but if the right systems are not in place, they cannot consistently deliver.
Also, it's important - as others have said - for you to understand the dynamics at play. Let me use one of your examples to explain what I mean:
HVAC Tune Up: Now this is something the tenant did not request, so the tenant probably doesn't care that it gets done. This means that the PM can create a WO and send it to the HVAC company, but then the PMC has two options: 1) Trust the HVAC vendor will schedule with the tenant and get this done and send the invoice or 2) Set a reminder to follow up on this every day until it's done.
Now, if you're in PM, you can see that #2 above probably costs money and has a low ROI. The only party pushing to get this item done is you, and there is just not pressure from any other side for the PMC to continue to follow up with this. The way I see it, the PM in this situation is really relying on what is probably a 3rd party vendor, to be organized and get it done. I know we have a really good HVAC vendor who is extremely organized (part of why we like them) but in reality, this is more the exception than the rule. So if the PMC is expected to do #2 in my example above, how many other situations like your HVAC tune up are they setting reminders to follow up on? This could be an entire 40 hour/week payroll position if this is what they are doing.
Turning off the exterior water before winter (maybe this means disconnecting hoses?): This is one where the PMC absolutely should have a reminder set and ensure it happens.
At my company, we do have a task called "following up with open work orders to ensure completion" - but the truth of the matter is, that this is lower on the daily priority list than many many other tasks. It has to be. We strive to be the best company in the world, but the nature of PM is that we deal with thousands of micro-transactions every single day, and we have to determine triage on those items, even with great systems and checklists.
TL;DR: I think you should set communication expectations with your PMC and make sure you guys are on the same page!
- Greg Weik
- 303-586-5560
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
What do you mean by stating the "PM is having trouble scaling" when you are a year in? Did your property double the number of doors they are working? Or are they rapidly adding other new clients for some reason? If they ARE experiencing exponential growth, that is a management issue that either they will catch up with, or they will fail across the board.
All of the Property Management contracts I have seen from incoming clients, as well as the contract we use, state that the PM company is agreeing to "Manage" the subject property. This implies that the PM has a significant amount of discretion on day to day ops. Of course, we certainly have SOME limitations, for example we must get written authorization for expenditure over a certain amount, usually the equivalent of one month rent or somewhat less except in emergency to protect life or property. We also communicate with Owners in detail, and with photos when tenants move out, and discuss options and/or how the Owner wants to proceed before initiating any repairs or upgrades.
In my view (which I have held for nearly 30 years, and with many very long term clients), we are not your "employee" subject to micromanaging. We have our standard procedures and policies (and, to a certain extent, material choices) that, for the most part, are the same for all clients. For example, we require all locks be rekeyed at tenant changeover. If you don't feel that is necessary, you initial a line item on the Management Contract and accept responsibility for your choice.
If you have seasonal or other unique, property specific tasks that you want performed, this should have been discussed during the interview and hiring process with the PM. We have an addendum specifically for "Special Instructions", such as "use only ABC Plumbing". You become responsible for any fallout and additional expense if your plumber upsets a tenant or performs substandard work in this case, or causes us to miss a Landlord/Tenant law time-frame for repair. You would add "exterior water needs to be turned off by October 15th, and turned on April 15th" etc. if that is something unique to your property that should be done annually. Cleaning gutters is not something that should need to be specifically addressed, nor is exterior painting...these are common conditions that should generally be apparent at annual inspections.
You have to understand, the PM is managing 100, 300, 1200 units or whatever the number is. Sorry, but a single unit owner is not Special...we do have many other Clients. We are running a business, and need to do so efficiently, especially with a generally low fee structure. Even if you are talking about a large multi-family property, if a PM accepts the property, they should be able to transition in a reasonable time, depending on overall property condition, quality of existing tenants, adequate records to set up account, and available funds. I have taken on numerous multi family projects through the years, from six-plexes to 75 unit complexes, with generally smooth transitions, except for one twelve unit property filled with unemployed criminals and homeless campers. We had to formally evict over half (the other half vacated on request), and we (PM) had tires slashed, resident faked heart attacks that repeatedly postponed the Sheriff removing them, and literally tons of debris left behind. It was lengthy, and costly for the owner, but now (over 5 years later) has very stable, long term tenants in clean, safe, secure, and updated apartments. We could never do that if every Client was emailing or calling with new instructions multiple times per month. Systems are in place for a reason.
I learned a long time ago, Property Management (residential) is largely self-policing. By that, I mean that first of all, you must provide clean, safe, and functional rentals. Most importantly, IF the PM is transparent, honest, and responsive; and utilizes vendors with the same traits, most days will be generally enjoyable. As a PM, if calls and emails are ignored, and you tell people only what you think they want to hear, and concern yourself only with money, you will have exponentially more bad (and long!) days, which will include far more turnover and court time than anybody wants.
One final point, as a general comment, not reflecting on OP, but there are a lot of Owners that are unable or unwilling to make appropriate repairs or properly prepare a vacant unit. As the old saying goes, you cannot make a silk purse out of a pig's ear. As licensed Professionals, depending on local law, we have no choice but to utilize licensed and properly insured vendors for most work. I will be the first to admit, I know a lot of "handyman" types that do faster and better quality work than Licensed contractors, but I will nor risk MY license for a CLIENT's profit.
Quote from @Wale Lawal:
Here are 5 Signs Of A Poor Property Manager:
1. Poor Communication
2. Failure To Keep Your Property In Top Shape
3. Failing To Comply With Local Requirements
4. Inconsistent And Late Payments
5. Too Many Tenant Complaints
If you are looking to change your property manager, be sure to do your due diligence and make sure they have all the qualifications required of them. As long as you know what signs to look out for, it should be easy enough to find one who is qualified.
Here are top 10 items to consider.
1. Cost V's Service
A good property manager will earn you money on your investment, while a bad one will cost you dearly. Engaging a good property manager is priceless. It may be worth paying a little more for a manager doing an outstanding job, rather than below value for one not worth anything.
2. Bad Communication
Lack of communication can cause major issues, including situations escalating to litigation before you are aware. Communication is important on all aspects of management from maintenance concerns to tenant selection processes. A simple concern like a faulty window lock can lead to major insurance costs. It pays to have Landlord Insurance in place for added protection.
3. Sloppy Service
You shouldn’t have to manage your manager. Particularly once your portfolio grows, it is not possible to constantly assess rental statements – that’s what you pay the manager for. The property manager should ensure rents are on time and take action when they are not. You should not have to step in and manage on your agent’s behalf.
4. Trustworthy
There have been occasions of dodgy property managers dipping into trust accounts. You must have trust in the people managing your property – if it doesn’t feel right, it probably isn’t.
5. Earning Their Fee's
Property managers should be completing regular inspections to avoid major issues developing. As discussed already, communication of these inspections and any items discovered is a basic requirement of good property management.
6. Licensed & Qualified
Always ensure any agent you engage has the required licensing and certification and is a member of relevant industry bodies, such as the Real Estate Institute of Australia. Also ensure their staff are trained and qualified to a satisfactory standard.
7. Market Awareness
Always ensure property rents are up-to-date with current rental market value. Good property managers will conduct regular market rental reviews and ensure the ‘right’ tenants for your property.
8. Poor Advertising
There are still some property managers with no website and no active advertising – this should set off alarm bells. Most decent property managers engage websites like realestate.com.au as a minimum. If they’re not, you need to ask yourself why they’re not spending the money to be a part of a significant lead generator for your property.
9. Where Do Their Loyalties Lie?
Is the Property Manager working on behalf of the landlord or the tenant? A good property manager must always have the interests of the landlord at heart.
10. The Right Advice
Overall, your property manager is responsible for ensuring the best possible rental return for your investment, so it is important they are able to provide the best advice for your property.
Good Luck!
Like this list!
Fore me there has to be some moral hazard when hiring PM. There are some companies where they charge a fee if the property is rented or not. Kind of a red flag to me.. if they're getting their money why would they really fight to lower vacancy.
For the PM that I use in Columbus they charge 7% a month and have some other general fees. But if they unit is vacant they're not getting paid either!
A good PM would be one that is actively communicating with you, making sure the property is taken care of well and not many complaints with the tenants.
I would be looking for a property manager that is keeping you up to date on the property and communicating with you timely.
The problem is you have someone working for you at 3.5%. They will be out of business, just a matter of when. As a PMC you cannot survive on that.
You get what you pay for folks. I don't understand why people want PMs to work for peanuts while protecting the largest investment the owner has. We would politely get you off the phone if you wanted us to work for that. You likely have just a guy doing it for some extra spending money. Likely not insured properly, etc.
- Peter Tverdov
- [email protected]
- 732-289-3823
Quote from @Peter Tverdov:
The problem is you have someone working for you at 3.5%. They will be out of business, just a matter of when. As a PMC you cannot survive on that.
You get what you pay for folks. I don't understand why people want PMs to work for peanuts while protecting the largest investment the owner has. We would politely get you off the phone if you wanted us to work for that. You likely have just a guy doing it for some extra spending money. Likely not insured properly, etc.
There's more context, I was an early client before they blew up, so I have a grandfathered in plan. I also worked previously (at a startup) with the guy who started it, so I'm sure that plays a role with my pricing.
Tons of great responses here, I really appreciate it!
Quote from @Wale Lawal:
Here are 5 Signs Of A Poor Property Manager:
1. Poor Communication
2. Failure To Keep Your Property In Top Shape
3. Failing To Comply With Local Requirements
4. Inconsistent And Late Payments
5. Too Many Tenant Complaints
If you are looking to change your property manager, be sure to do your due diligence and make sure they have all the qualifications required of them. As long as you know what signs to look out for, it should be easy enough to find one who is qualified.
Here are top 10 items to consider.
1. Cost V's Service
A good property manager will earn you money on your investment, while a bad one will cost you dearly. Engaging a good property manager is priceless. It may be worth paying a little more for a manager doing an outstanding job, rather than below value for one not worth anything.
2. Bad Communication
Lack of communication can cause major issues, including situations escalating to litigation before you are aware. Communication is important on all aspects of management from maintenance concerns to tenant selection processes. A simple concern like a faulty window lock can lead to major insurance costs. It pays to have Landlord Insurance in place for added protection.
3. Sloppy Service
You shouldn’t have to manage your manager. Particularly once your portfolio grows, it is not possible to constantly assess rental statements – that’s what you pay the manager for. The property manager should ensure rents are on time and take action when they are not. You should not have to step in and manage on your agent’s behalf.
4. Trustworthy
There have been occasions of dodgy property managers dipping into trust accounts. You must have trust in the people managing your property – if it doesn’t feel right, it probably isn’t.
5. Earning Their Fee's
Property managers should be completing regular inspections to avoid major issues developing. As discussed already, communication of these inspections and any items discovered is a basic requirement of good property management.
6. Licensed & Qualified
Always ensure any agent you engage has the required licensing and certification and is a member of relevant industry bodies, such as the Real Estate Institute of Australia. Also ensure their staff are trained and qualified to a satisfactory standard.
7. Market Awareness
Always ensure property rents are up-to-date with current rental market value. Good property managers will conduct regular market rental reviews and ensure the ‘right’ tenants for your property.
8. Poor Advertising
There are still some property managers with no website and no active advertising – this should set off alarm bells. Most decent property managers engage websites like realestate.com.au as a minimum. If they’re not, you need to ask yourself why they’re not spending the money to be a part of a significant lead generator for your property.
9. Where Do Their Loyalties Lie?
Is the Property Manager working on behalf of the landlord or the tenant? A good property manager must always have the interests of the landlord at heart.
10. The Right Advice
Overall, your property manager is responsible for ensuring the best possible rental return for your investment, so it is important they are able to provide the best advice for your property.
Good Luck!
Quote from @Bryan Contreras:
Quote from @Wale Lawal:
Here are 5 Signs Of A Poor Property Manager:
1. Poor Communication
2. Failure To Keep Your Property In Top Shape
3. Failing To Comply With Local Requirements
4. Inconsistent And Late Payments
5. Too Many Tenant Complaints
If you are looking to change your property manager, be sure to do your due diligence and make sure they have all the qualifications required of them. As long as you know what signs to look out for, it should be easy enough to find one who is qualified.
Here are top 10 items to consider.
1. Cost V's Service
A good property manager will earn you money on your investment, while a bad one will cost you dearly. Engaging a good property manager is priceless. It may be worth paying a little more for a manager doing an outstanding job, rather than below value for one not worth anything.
2. Bad Communication
Lack of communication can cause major issues, including situations escalating to litigation before you are aware. Communication is important on all aspects of management from maintenance concerns to tenant selection processes. A simple concern like a faulty window lock can lead to major insurance costs. It pays to have Landlord Insurance in place for added protection.
3. Sloppy Service
You shouldn’t have to manage your manager. Particularly once your portfolio grows, it is not possible to constantly assess rental statements – that’s what you pay the manager for. The property manager should ensure rents are on time and take action when they are not. You should not have to step in and manage on your agent’s behalf.
4. Trustworthy
There have been occasions of dodgy property managers dipping into trust accounts. You must have trust in the people managing your property – if it doesn’t feel right, it probably isn’t.
5. Earning Their Fee's
Property managers should be completing regular inspections to avoid major issues developing. As discussed already, communication of these inspections and any items discovered is a basic requirement of good property management.
6. Licensed & Qualified
Always ensure any agent you engage has the required licensing and certification and is a member of relevant industry bodies, such as the Real Estate Institute of Australia. Also ensure their staff are trained and qualified to a satisfactory standard.
7. Market Awareness
Always ensure property rents are up-to-date with current rental market value. Good property managers will conduct regular market rental reviews and ensure the ‘right’ tenants for your property.
8. Poor Advertising
There are still some property managers with no website and no active advertising – this should set off alarm bells. Most decent property managers engage websites like realestate.com.au as a minimum. If they’re not, you need to ask yourself why they’re not spending the money to be a part of a significant lead generator for your property.
9. Where Do Their Loyalties Lie?
Is the Property Manager working on behalf of the landlord or the tenant? A good property manager must always have the interests of the landlord at heart.
10. The Right Advice
Overall, your property manager is responsible for ensuring the best possible rental return for your investment, so it is important they are able to provide the best advice for your property.
Good Luck!
Thank you!
Always happy to share the knowledge and grow together...
- Wale Lawal
- [email protected]
- (832) 776-9582
- Podcast Guest on Show #469
@Joshua Stein What you are describing is a very common problem with property managers and it does not matter if you are paying them a 10% fee or a discount fee. This is my experience in both Indiana and California. I'm talking about having to follow up with them multiple times on small tasks, like having the HVAC serviced, or turn off the water in winter.
Also, it's common for them to grow exponentially (like from 80 units to 180 units in one year) and then not hire any additional staff. I think the only way to deal with this sometimes is to use a PM for a tenant placement service only, then have the tenant pay rent to the me landlord directly through online PM software and have your handymen, plumber etc that you dispatch when there are repairs needed or routing maintenance (like HVAC servicing). I try to require the handyman to send me photos after the work is done and before I pay to confirm the work was done.