This is How to Manage Your Property Manager
TL;DR - Hiring a property manager can reward you with more time, less stress, and higher rent! But first, you need to manage them by asking them good questions and consistently communicating with them.
So you’ve bought your first property. Congrats!
But now you have to make some decisions. First and foremost…
Who’s going to run your property?
Because you certainly don’t want to do it; whether that’s because you invest remotely or don’t enjoy self-managing.
The best option for you is a property manager. They’ll take care of your property and handle all the dirty work.
Before you hire one, let’s go over how they’ll benefit you and how to manage them.
Managing Your Property Manager
Why Not Do It Yourself?
There’s a good argument to be had over whether or not to even hire a property manager.
After all, you’ll be paying anywhere from 8-12% of your rent each month to them.
But in return for the slight hit in revenue, you’ll be gaining a lot more.
“Like what?”
How about:
Time
Less stress
Higher rent
Let’s break those down.
Time
Think about all the things you’d have to do if you self-managed your property.
You’d have to be available 24/7 for your tenants. That means even when you’re sleeping in on Sunday, you might get a call at 5 AM. Asking you to change a light bulb or complaining about that fix you already scheduled.
Oh, you wanted to relax Saturday? Well, a pipe burst in your property and you need to drive across town to fix it. And probably spend the whole day doing it.
It’s the little tasks that add up over time. Time - a finite resource.
If you have a property manager to handle these issues for you, you can focus on the truly important things.
Less Stress
Let’s restate this - self-managing means being ready 24/7 for tenants.
The little issues, the big issues, they all come back to you.
You’re working hard on a new property deal, but a current tenant calls and says that they’re moving across the country. You need to fill that vacancy or you aren’t getting paid rent for the foreseeable future. And you have to solve this issue on top of worrying about finishing the investment deal.
Self-managing can be a burden because you can’t put your whole focus into other areas of your life.
But with a property manager, you can.
Higher Rent
Property managers are professionals who know the area they work in like the back of their hands.
That new 3 bedroom 2 bath condo next to the beach? A good property manager would know how much rent they can charge for it.
And with a high enough increase in monthly rent from your tenant(s), you might even be able to cover your property manager’s fees.
But How Do I Manage A Manager?
Let’s face it - we’re all human. Just because a property manager is a professional in their craft doesn’t mean they’ll be perfect.
They might start out firing from all cylinders only to slack off a few months down the road.
That’s where you come in. You’ll be managing your property manager(s).
While this seems like a task in itself, it’s much easier than managing your tenant(s) directly.
Here are some best practices for you.
Ask Them Questions
A bad property manager could be shirking on their responsibilities and you wouldn’t have a clue.
To verify that they’re doing the work you’re paying for, here are some questions you can ask.
How fast did you fill my vacancies?
A good property manager will be able to find quality tenants for you quickly. Especially if you aren’t getting any rent - because that means that they aren’t getting paid.
The property manager should know the date ads were posted, when they started showing the property, and when a new tenant moved in.
If they’re lacking this information, then they might be disorganized. Maybe they have a bad memory. But a good property manager will be on top of everything concerning your property.
How often do you inspect my property?
You want to know that your property is being taken care of. That your tenant(s) are being respectful and staying in line.
If you’re a remote investor or a busy person, it can be extremely difficult to keep tabs on a property to ensure this.
That’s why you’ve hired a property manager.
Your property manager - if they’re professional - should have scheduled visits to check out your property. To inspect both the interior and exterior. They should be looking for any issues or concerns to handle so that big disasters are prevented.
If you feel that your property’s being neglected, then it’s time to find a new property manager.
What preventative maintenance do you perform consistently?
You want to make sure your investment’s being cared for.
Good property managers will have a master calendar of preventative maintenance that they do for your property. Whether that’s cleaning the gutters, unclogging the drains, or simply inspecting your property.
The best way to figure out if your property manager’s doing their job is to understand what actions they’re taking to protect your asset.
If they’re simply waiting for a problem to arise, then you’ll be the one paying for their negligence.
Don’t let that happen.
Communication is King
You need to be informed. Informed of your tenant’s status, the condition of your property, what fixes have been scheduled, when to raise your rent, etc.
You’re paying your property manager to let you know these things. They’re the experts and you rely on them.
If they aren’t responding to your emails, texts, or calls then that’s a huge red flag. Communication - especially as a remote investor - is pivotal when dealing with a property manager.
When you can’t trust your property manager to be there for you, how can you trust them to be there for your tenant(s)?
To facilitate communication, you can schedule daily, weekly, or monthly meetings with your property manager. Whether you have them on the phone, in a Zoom call, or in-person doesn’t matter as long as you’re talking.
Develop a system where you can check on the status of your property with the person who knows it best (or second-best) - your property manager.
Communication must be priority number one between you two. This is a partnership and there’s no quicker way to end a partnership than uncertainty.
But… I Like Money!!!
It’s okay to be frugal. To save as much money as possible.
But hiring a property manager is worth it.
Imagine you’re making $1,000 in rent per month on a property.
You hire a property manager to manage it and they ask for a 10% monthly cut. You give the okay and they get started.
Six months pass and your property manager has been absolutely killing it! Your tenant is super happy, all fixes have been handled in a timely manner, communication has been excellent, and best of all - you’ve been practically hands-off the entire time!
All it cost you was $100 a month.
Isn’t your time and freedom worth that?
Passive Income
When you hire a property manager to manage your investment property, any revenue you gain will more or less be passive.
That’s the dream, isn’t it?
But for a partnership between a property manager and landowner to work, there needs to be consistent communication.
You must have discussions about how your property is being managed - even if the conversations are difficult.
And if you get the sense that your property manager isn’t taking care of your asset, it’s time for you to move on and find someone more professional.
How We Can Help You
Does investing in real estate sound intriguing to you? Would you like to learn more? We’d love to be of value!
At Undoor, we pride ourselves on teaching new and experienced investors how to maximize their gains with minimal stress. Our goal is to help you fall in love with real estate and real estate investing. What we’re most passionate about is maximizing investment gains for people like you.
Do you want to get key insights and advice that’ll help you get ahead of the game? Don’t hesitate to contact us for any and all real estate wants or needs.
