Hiring a Property Manager: What To Look For
You’ve just made a large financial decision. A big move was made to acquire an investment property and now you need to find a reputable property manager to take care of the day-to-day management. This is a big decision, as this person/ people are responsible for your investment! What should you look for when hiring a property manager?
Trustworthiness
Any great relationship is built on trust. You won’t be able to manage the manager on a regular basis and might correspond once a month, maybe less. Ask yourself, would you trust this person to rent/live in your property? Trust can be seen as a function of character and competence. Are they a person you enjoy being around and working with? If yes, your tenants most likely will feel the same way. How well do they know the business? This is very evident in the number of homes they manage.
Experience/Credibility
Experience can be seen as the second prong of trust. How well do they know the business? This is very evident in the number of homes they manage. They can talk the talk, but can they walk the walk? See if you can get reviews or testimonials from current clients.
Occupancy Rates
Occupancy rates are very important. Your home isn’t making any money sitting vacant six months out of the year. In the short-term/ vacation rental space this is crucial as your home is rented generally 2-3 days per booking, maybe a week. There is no long-term commitment and no guaranteed revenue for 3,6,12 months out of the year. These types of homes need constant attention and marketing to generate revenue. A set and forget strategy is not going to fly in this industry. Make sure your property manager on vacation rental homes has a sound marketing and pricing strategy to keep occupancy rates up even during the off seasons.
Technology Stack
Data-driven decision-making isn’t the exception, it’s the rule. What hardware/software are the managers utilizing to vet potential tenants, drive financial decisions/investments, manage owner relations, manage client relations, resolve complications etc.
Availability & Responsiveness
A big reason property managers are hired is to answer those 2AM calls that owners don’t want to put up with. Property management is fairly simple until a pipe bursts in the middle of the night and needs to be taken care of. Does your manager have 24/7 call coverage? Are they willing to take care of those 2AM emergencies or have someone in place to get that done? The tenant/guest always comes first.
Long-Term Thinking
Real estate is like a marriage, it’s a long-term commitment. If you want a one-night stand, get into cryptocurrencies. Could be the best night of your life or the worst. Your property might not have cash flow from day one. Your manager needs to understand this and piece together a long-term plan to help your property appreciate, take care of it to prevent unnecessary maintenance or expenses, and help you pay your mortgage for example.
Going Forward
Big investments come with big decisions. That investment is like your baby and you need to hire a babysitter. Someone you trust to keep your investment safe, healthy, and growing. There’s a lot you need to consider when hiring a property manager. We hope these tips help get you started.
