When should I fire my property manager?
As a landlord, you may sometimes be unhappy with your property manager. It is always hard to decide whether it is time to part ways and search for new rental management, and that is why we approach today three issues that you need to be aware of before you decide to change the property manager of your rental property investment.
Communication & Transparency
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Already for a while, the main complaint about real estate and property management companies is the lack of communication. If you are in a situation in which you are not informed enough about the administration of your rental property, you should first step back and analyze whether your communication expectations are reasonable. At the time when they sign in the property management agreement, most landlords receive informational materials about the types and frequency of communications they should expect from their managers. So go online or browse your paperwork and check out these materials to understand whether your manager made promises that were not kept, or your expectations were not justified. If you establish that your manager does not deliver the level of communication that was promised when signing with them and that a considerable part of the management and administrative work is not documented and therefore you cannot get access to it, this may be a good moment to think about switching your manager.
Lack of management transparency is not the only issue that plagues manager-landlord interactions. You may experience difficulties in reaching out to your property manager, either because they do not respond, or they take too long to answer your questions. Beware that response times vary depending on how complex your issue is. Your manager may be doing his best to solve your problem, but they depend on other third parties as well. Typically, you should be able to get an answer to your queries in 1-2 business days, or at least a message that the management team started looking into the matter. If your questions constantly drag on for days without feedback, this is a good reason to think about a new manager.
Accountability for errors
Property management companies are made of people, and it is human to make mistakes from time to time. While you should not necessarily take action if a small detail was omitted during a property inspection, or there is a small accounting mistake in your monthly statement, your property management company should always hold itself accountable for errors, respond to your questions, and corrects any mistakes. If it does not happen, consider parting ways with them.
Another aspect that indicates the quality of property management services is how your property manager screens tenants. In order to secure a consistent rental income, your property must be occupied by a quality tenant that is willing to stay long and make as little damage to the unit as possible. A single problematic tenant does not equate with your manager overlooking thorough screening. All tenants come with risks and some may even enter a tougher period of their lives when they rent your property. Do not forget that time is also against your manager. It is crucial to select the best tenant in the shortest period possible so that your property turns out as much rental profit as possible. If your property manager, however, places often on your property tenants with a poor credit score or that default on rent or are evicted for a host of other reasons, this may be an indication that the tenant screening process is not proficient enough and that you may be better off with another manager.
Interested in more tips and tricks for landlords? Contact us at email@example.com for more information on how to manage your property, or how to collaborate with a property management company.
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