Blink Property
A good property manager can save you time and money, particularly if you have several investment properties or live in a different area to the properties you own. He or she can save you time, stress and money by taking care of all the little things that might otherwise keep you up at night.
On the flip side your property manager may not respond to your calls, fail to maintain your property or leave it untenanted, putting a serious dent in your cashflow. So how do you pick a good property manager? What are their obligations to you? And if it isn’t working, how do you call it quits?
It’s your property manager’s responsibility to market your property to attract tenants and set the rental rate to help you maximise your monthly income. They collect rent, screen occupants, and handle tenancy issues so you don’t need to be involved in the day-to-day. It’s their role to organise repairs and maintenance and help ensure your property is legally compliant.
It’s also their job to carry out inspections up to four times a year, address any issues directly with tenants and ensure they are resolved in a timely manner. Fees vary state to state, but in general property managers charge an initial fee of 1-4 weeks rent and a maintenance fee of 5 – 10% of the monthly rent.
It’s up to you how frequently you want to contact your property manager although every month or two is usually enough to keep abreast of how your properties are going.
When selecting a property manager, it pays to do your research. Try and pick someone with local knowledge and a portfolio similar to your own. Look at their current rental listings to see how they market their properties and ask around or check online reviews for managers with good reputations.
Ask them direct questions. How do they handle problem tenants? How often will they conduct inspections? Or how often will they be in contact with you? Communication with your property manager is key, and if you find them hard to get a hold of, check on your property as it may not be getting the attention it needs or something might be wrong.
Another red flag is when your property manager fails to maintain the property. You should receive reports every six months and if you find they are not staying on top of repairs and maintenance, the chances are they are not doing their job and your tenants aren’t happy either. They should also help ensure your property remains compliant with housing regulations and property laws as failure to do so could result in breaches and lawsuits.
The last thing you need is an untenanted property causing you cashflow issues and the associated stress. Even in a slow rental market, a good property manager will guide you towards tenants, even if this means giving the place a fresh lick of paint or reducing rent until the market recovers.
Changing property management companies is not as difficult as you may think. Often, the new managers will even handle the change for you.
There are some things you can do to get the ball rolling. First, check your required notice period (usually 3-9 weeks) and put your intention to terminate in writing. There is a common misconception that you are “locked in” with your property manager for the term of the lease, which isn’t the case.
Next, check for any hidden fees in your contract. Ideally check the terms and conditions before signing up with a property management company as some will charge for early termination. Lastly, request all records of leases, security deposits, income and expenses and make sure your tenants are informed well in advance to ensure a smooth transition.
A proactive and motivated property manager is worth their weight in gold, and making an informed choice will help you free up time and money to allow you to focus on achieving your property goals.
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