So you’ve heard a property manager can help you solve a multitude of problems landlords have to deal with. They save you time and money while efficiently taking care of your investment property. More so, you read about what duties they should have, what qualities to look for in your property manager or how to choose the company, but what about things you should avoid when choosing a property manager? What are some early signs that your collaboration has a high chance of not working out?
Let’s break down the top 6 things we consider red flags before you begin your professional relationship with a property management company.
Poor Communication
Never overlook the fact that they don’t communicate efficiently. You’re leaving this person in charge of the well-being of your investment. They will be responsible for communicating with potential tenants and then maintaining the discussion between you and them. They will also be responsible for fixing urgent situations, collaborating with vendors, frequently informing you of updates, etc. Not only do they have to do all this, but everything has to be done in time. You don’t want to find out too late that something needs fixing or that the rent hasn’t been paid in two months.
Look for early signs of poor communication before you sign the contract with them. Some of these might be taking too long to respond to emails, not picking up their phone, or not calling you back. You also might want to look out for them not fully explaining their contract to you or avoiding certain questions or not responding to them promptly. If this is something that happens at the beginning of your collaboration, be aware that more significant issues may arise after you start working together.
Choosing based on price
Sure enough, we all want to budget our finances wisely. However, choosing something as important as a property manager based on their fee may be a bad call. A small fee might mean hidden costs or services that should be included, but you find out they charge extra for those only later, etc.
Read your papers carefully and make sure everything you need, and everything you think you don’t need, is covered in the contract. Remember that it’s better to be prepared for anything and that you get what you pay for. Property management is not the place to save money.
License and Qualification
In all that excitement and rush to find the right fit for you, you might overlook the very first thing you need to check - if they have the necessary certification and license. It’s important to know you don’t deal with someone who doesn’t have the right to practice in this industry and who doesn’t have the knowledge.
You might also ask or pay attention if their team is trained. Their participation in workshops and training speaks about their dedication to their job and how prepared they are.
Not verifying their services
The best marketing is not what you say about yourself but what others say about you. The recommendation is the oldest and best marketing strategy. According to this Baltimore property management company you should check out their reviews section, comments on social media, and everything you can find about them.
If you don’t find anything online, you can ask them for a reference contact person or if they have any way to back up the quality of their services. Ideally, you want to make sure they walk the talk.
Choosing someone out of the property’s proximity
Oftentimes, investors buy property far away from where they live. As the landlord, that’s understandable. However, your property manager should be from around it.
Familiarity with the area of the property will provide them with local knowledge of the laws and market insights. For example, you want your manager to know what is an acceptable rent in that area, you want them to know the standard marketing practices there that will help you limit the void period, etc.
You also want them to have easy access to it. This is in the case of regular maintenance (as it can be a huge inconvenience and a waste of fuel to drive 3 hours just for maintenance), repairs, picking up rent, overseeing construction, etc.
Not asking enough questions
When you have just met someone, it may not cross your mind to ask certain questions, especially if they may seem uncomfortable. Nevertheless, it’s important not to shy away when getting to know a potential property manager. Ask them how many years of experience they have, how many properties are they currently managing, how much time can they dedicate to your property, what challenges they face with tenants and how they solve them, if they have legal expertise, etc. Make sure you cover everything you need from the very beginning so you won’t get unpleasant surprises when you least expect them.
Conclusion
Choosing a good property manager can skyrocket your investment, but a bad one will give you trouble and burn a hole in your pocket. Take your time, do your research well and think about what is best for your investment long-term.
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