If you have decided to work with a property manager, you will find that the benefits are many. Not only will your time be freed up to manage other investments, or on your main career -- but also, a property manager can (and should) increase the value of your property earning potential.
But hiring a bad property manager can be costly! Don't work with a property manager that cannot provide you with the background or information that you are looking for. Research prospective property management companies and take the time necessary to make a wise decision. You will be grateful later for the vetting you do today!
Here are some signs of a "bad" property manager:
Unwilling to Provide References. If the property manager cannot, or is unwilling to provide names and contact information, you should remove them from your list of prospects.
Not Enough Industry Knowledge. Being a property manager (or management company_ required industry knowledge on proven methods of securing rental payments, legal changes, performing routine maintenance, marketing trends, or complying with regulations. You may find someone who has been in the business just a short time who is excellent in this area, or a company that has been doing business for a decade and still cannot handle the critical aspects of renting your specific property.
No People Skills. If the property manager(s) are anything less than accommodating, polite, respectful, kind and professional when you meet with them, they will be the same when they work with your tenants. Choose a company with people skills who can get the job done... with a smile!
Excessive Extra Costs. Professional property managers should be able to give you a breakdown of your costs, including anticipated marketing. There will always be a additional cost of doing business, but an experienced property management company will be upfront with you about what you can expect.
Can't Handle Conflict. Being a property manager sometimes involves dealing with uncomfortable situations. You need to choose a property management company that has had conflict resolution experience and training to diffuse difficult situations and people in the best way possible.
Unwilling or Unable to be Flexible. Property management can sometimes be a 24/7 kind of job. If you hire a property manager who can only work 9-5, you will be covering the middle-of-the-night calls! This is where going with a reputable company with a call service is very helpful!