What Does a Good Property Manager Do?

Real estate is a team sport. If any member of your team is weak, you will have a weak foundation to build on and your investment may not work. No other member of your team is more important than your property manager.

A student of mine syndicated an apartment building in Dallas. When she first got to the property, the on-site management staff was very weak. They had rented the apartment to all sorts of bad elements and the property was crime-ridden. The property management company didn’t ensure the timely collection of rent and there were a lot of delinquencies. Lastly, the staff was very lax and maintenance issues were not being addressed. The building was losing money and good tenants were leaving in droves.

It wasn’t pleasant to do, she had to replace the property management company with new property managers and staff that were much better suited to the job.

The new property managers ensured that the bad elements were evicted. They enforced policies about late payments and got the delinquencies way down. And they made sure that tenants’ maintenance issues were addressed right away.

In a couple of months, the building turned around completely. Great new tenants moved in, and great old tenants who had been thinking of leaving renewed their leases. Everyone is happier and the property looks and feels like night and day!

If you're not planning on self-managing your properties, property managers are an essential part of the team you need to be a successful real estate investor.

What Does a Property Manager Do?

A professional property manager will manage your property once you take ownership. Your property manager(s) will:

1. Collect rents
2. Provide/arrange for repair & maintenance services (they handle those broken toilets!)
3. Collect and maintain security deposits
4. Lease out vacant units
5. Provide accounting services - handle accounts and pay the bills
6. Inspect properties
7. Handle evictions if necessary

Good property management is invaluable.

A good property manager will help attract and keep great tenants. They will keep things running optimally with little input from you so all you need to do is collect checks.

A great property manager is also helpful to retain BEFORE you purchase, as they can help guide you in making a profitable purchase. Because they know the market well, they can help steer you in the direction of good deals and/or steer you from bad deals. A property manager can also help you work out a budget to ensure you have sufficient funds, and connect you to other members of the team.

Bad property management, on the other hand, can quickly sink your property's income and value. A property manager who chooses to lease to bad tenants who don’t pay and/or vandalize property, or who causes good tenants to leave because they are rude or don't handle maintenance issues promptly, can take down your smoothly-running investment ship in no time – often before you are even aware there is a problem! Another property manager flaw to look for: a manager that is not paying bills on time and/or antagonizing your vendors.

Conclusion

How your property is managed will make or break your investment. Make sure you work with the best property manager possible. The ideal manager should have great communication skills, be responsive, be organized, and be a great problem-solver.

About Monick halm

Monick Halm, founder of Real Estate Investor Goddesses, is an educator and advocate for female real estate investors, Her mission is to help 1 million women achieve financial freedom through real estate investing. To find out more about Monick and connect with her, go to www.reigoddesses.com.