If you had the opportunity to choose between price and quality when hiring a property manager, I strongly suggest you go for quality. A good property manager comes with a premium, typically 8 percent, compared to averages that are just 5 percent. While 3% is a significant savings, a good property manager can save you much more; of anguish, stress, expenses, vacancies, and they know how to ride the waves of the market.
Good property managers always make sure they get their instructions right. However, final decisions should be based on your judgment. Some property managers also have a tendency to milk more money from you. They ask for repairs when in fact there is no damage. Before responding to repair requests, make sure you know the details of the damage. It can also suggest some things to do before calling the repairman. The problem can be solved by simply adjusting the main water switch.
Also, if a damage really needs a fixer, be sure to get a copy of the bill to make sure your money is going to its intended use. The invoices also have the phone number and address of the firm that you can call if you want to confirm or clarify anything. You should also treat your repairmen properly as they know the ins and outs of your property and can accurately determine the condition of the units. You can anticipate future repairs and won’t be fooled by bogus repair claims.
Getting bad tenants is inevitable, but it can be significantly reduced with a good property manager. Remember that tenants who don’t pay rent are only as good as those who are vacant, and property managers have the eye and skill to screen tenants, filtering out the good from the bad. You may also want to screen tenants yourself to ensure their quality. It is very comfortable if you have personally met the people who are going to live in your property.
Your property manager also has to be strict about your business rules. No apologies. He has to know how to assert authority and have the guts to evict someone if he or she has been compromising payments. The tendency if you let a tenant skip rents is for them to become habitual. It may get to a point where they are no longer able to pay the accrued months of rent and end up being evicted. You are technically responsible for their eviction and for tolerating their negative behavior. Bad habits are easy to form but difficult to live. Good habits are hard to form but easy to live.
Property managers are great for your business. However, you cannot completely entrust everything to this person. No matter how good they are, you should always know how important it is to know what’s going on inside your business. Also, be precise and clear so that no tenant knows your name and contact number.