Trust but verify. Do you trust your PM? Do they trust YOU?

Making the decision to hire a PM can be a difficult, costly and emotional process for some.  For others, it is simply a matter of business and scaling.  Either way, however, trust will make or break the relationship.

Interviews are important for both parties if they are used correctly.  They will show you the points you agree upon and those you don't.  Interviews will also tell you if those points of disagreement can be reconciled.  

Rental rates, management fees and self-maintenance are common points of contention between owner prospect and manager and probably the most easily solved as well.  Despite this, the conversation offend trends toward the prospect saying something like "Ok, thanks but I am still looking.  I will call you in a week."

Instead an owner should ask follow up questions such as: what are the comps you are using and how do they compare to my comps? (You do your own comps, right?); Is your maintenance team licensed and insured and do they know fair housing?; Are your rates competitive and what sets you apart from XYZ Management?  Flat out - WHY SHOULD I HIRE YOU TO MANAGE MY PORTFOLIO?

Don't drop the conversation but instead use it to dig deeper and make it a learning experience for both of you.  Even if you don't hire them you both will learn a lot about your respective positions and yourself.  PM's are (should be!) real estate investors too and we share the same passion in RE as you!

Don't let a tight or competitive market sway you too much.  This is where errors in judgement are made - out of fear.

On the flip side, hold up your end of the deal.  Understand the contract before you sign.  Like anything else, doing leads to appreciating.  Self management will foster a deep appreciation for  a great PM when used in conjunction with a plan to scale your business.

Trust takes time to develop and both sides must work toward it.  The decision to hire a PM comes with its own path to success.  Why, how, where, when etc... must all be answered before the first phone call to a PM.