According to research, the US Property Management Market size will reach $6.16 billion by 2028. The market will grow at a 7.9 percent Compound Annual Growth Rate (CAGR). Your property will not make money unless you rent it out with the help of a property manager. Hiring a property manager ensures they check on the maintenance and makes tenants pay rent on time.
The best property manager will take all the hassle and worry from you. However, selecting a property manager on your own can be difficult, and most investors/landlords make mistakes.
Keep reading to know the common mistakes to avoid when hiring property managers.
Not Doing Your Research
You may get a few names from your friends and fellow landlords. But, how do you know how to pick the best property manager to ensure your property is in safe hands?
Go that extra mile and do your due diligence. You only need an internet connection and a few minutes to know about local property managers.
You can find real estate websites on Google to contact many property managers and real estate agents. But, be careful about how you choose a property manager from these websites.
Ensure you check on the candidates’ reviews from fellow investors. In-person or word of mouth is the best source of trustworthy feedback.
Choosing Based on Price Alone
You may have a budget in mind when choosing a property manager. But, you should understand that you will get what you pay for when it comes to your property management.
Hiring property managers because they are asking for a low price isn’t advisable. Instead, look for a reputable and skillful property management company.
That way, you get value for your money in terms of their service.
Failing to Ask the Right Questions
It’s best to pick about three property managers and learn more about them by asking the right questions. First, inquire about their property management qualifications.
You will know the level of their managerial experience by knowing their qualifications. Second, ask about the number of properties they are currently managing.
Then, know about their best practices. You will have an overview of their core values, how they do things, and their strengths and weaknesses.
Also, know if they know the local real estate market. You will need to know what tenants will want, like the type of properties that appeal to them.
Your property manager should know about real estate trends in your area.
Failing to Read the Fine Print
True, terms and conditions will not be fun to read. You’ve likely skipped that part on various occasions. But, for property management, never skip reading the fine print.
Since your property is a big investment, you should not take it lightly. Ensure you know about your property manager’s terms and conditions first.
See if the small print forces you to agree on things you can’t do or provide. Know that there are property management companies that offer inescapable contracts.
Such contracts mean you can’t cancel the service unless you pay a big amount.
Hiring Someone without an Active Communication
You’re leaving your property manager to handle any business-related with your property. Though it may seem peaceful for the manager to handle everything, they should update you on your property’s status more often.
If the property manager is not communicating properly with you, they may hide some serious problems. You should know everything relating to tenants and maintenance.
Your manager should also communicate with your tenants. Also, some managers wait until it’s too late to ask for rent from tenants, which is a bad thing to do.
You may evict tenants just because the property manager has failed to communicate with them in time. Inconsistent or no communication will make tenants get behind on rent.
Going Completely Hands-Off
The greatest advantage of hiring property managers is to free up some time and avoid handling every aspect of your property. But, it’s vital to stay involved with your property as much as possible.
You need to always stay in touch with your tenants. Ensure the lines of communication between you are always open.
Note that the property manager you choose should not replace you completely as a landlord.
Failing to Get All the Services You Need
Note that not every property management firm will offer you the same services. You should first know what you need based on your property.
For instance, do you need a manager who will handle the collection and deposit of rent checks for you? Will they also handle landscaping services? What about emergency calls and rental unit maintenance?
Ensure you take time to go through the contract to know if it includes everything you need before signing.
Choosing a Property Manager That Is Not Offering Modern Perks
Ensure the property manager is up to date. You can do so by checking their website, and if it looks old or doesn’t offer much information, they are not the right choice.
But, it is a good sign if the website is robust and offers tenants a communication portal, and they can also pay rent online. Ask for their services to know if they are staying competitive with the times.
Avoid the Above Common Mistakes When Hiring a Property Manager
Hiring a property manager can be hard if you’ve never had to pick one before. Ensure you check out the above common mistakes landlords make.
Real estate is a lucrative business that you should care for in the best manner possible. That’s why you should hire the best property managers.
At Reedy & Company, we are the top property management company in our area. We will provide you with the best-in-class advice to help you make better property decisions.
Contact us now for a successful real estate investment.