Are you looking to hire a property manager? Owning an investment property can be key in building your financial future but, running a successful rental investment is not always easy. The key is finding the right property manager who’s able to help minimize your investment risk and maximize your return. Highly successful property managers have a niche set of traits, habits, and skills to produce results. In this blog, we collaborated with Bigham & Associates to identify traits of successful property management companies and how you can find one for your own needs.
1. Great communication skills.
A property management company should understand that communication is key to running a successful investment property. They need to communicate with both their clients, the owner, and the tenant regularly. Regular communication helps build trust amongst all parties. It also helps you keep tabs on the performance of a property.
2. A mastery of all the rental laws.
Many state and local laws guide the relationship between the manager and the tenant. Some of the most common rental laws include:
Eviction Rules and Procedures
Landlord-Tenant laws
The lead disclosure rule
Fair Credit Reporting Act
The Fair Housing Act
Proper understanding of these laws by a competent property manager help protect you, your property, and your tenants.
3. Inspect the property regularly.
A great property manager will visit the property they are tasked at managing regularly. Generally, they will do it four times during a lease period. That is, when a tenant is moving in, when seasons change, a casual viewing when driving by, and when the tenant leaves.
Unfortunately, many property managers rarely visit the properties they manage unless a tenant calls to complain about something. This is a poor management service that results in a poorly performing investment property.
By your manager visiting regularly, your property will be able to maintain its value, you will know about the things that need maintenance work or repairs and ensure that tenants are following the rules.
4. Ensure rent is paid on time.
It goes without saying that rent is the bread and butter of any rental investment. Without a consistent stream of rental income, many things can go wrong. Among other things, you may become unable to continue servicing your mortgage or pay for crucial property expenses like the property tax. A great property manager understands this. As such, they will work to ensure that tenants pay rent on time, every time.
5. Great marketing skills.
Today, people are searching online to find their next rental. No longer can you just place “For Rent” signs out front and hope for the best. A good property manager must leverage different types of marketing to get prospective tenants to notice your vacant unit.
You also want to make sure your rental units get seen by your potential virtual audience. That’s why great managers use online marketing strategies such as social media and rental listing sites as well as offline marketing strategies.
How to Find a Great Property Manager
To find a great property manager, you need to conduct an interview and ask the right questions. The following are some of the questions that can help you narrow down the best possible candidate.
How do you collect rent?
Who handles the maintenance work?
How are potential tenants screened?
How do you send reports?
What is your fee structure?
How many properties are you currently managing?
Are you a licensed property manager?
What Are Landlords Responsible For?
Landlords have many responsibilities under the landlord-tenant law. While each state has laws that vary slightly, there are some general duties and services that every landlord should provide.
Essentially, as a landlord, you are required to provide a home that is both safe and habitable. If the property isn’t acceptable, you may find yourself in court. A habitable rental property is one that has:
Properly functioning door locks
Well-maintained railings, stairways, and floors
Sufficient number of garbage receptacles
Sanitary grounds, building, and appurtenances and is free from vermin or debris at the time of lease or rent
Well-maintained electrical lighting compliant with applicable law
Properly maintained heating facilities that are compliant with the applicable law at the time of installation
Compliant water supply that’s capable of producing both hot and cold running water
Well-maintained gas and plumbing facilities that are compliant with the law at the time of installation
Effective weather protection and waterproofing of exterior walls and roof
In addition, landlords are also responsible for ensuring that the rental home is always in a good state of repair. A great property manager understands all of the above and will ensure your property remains compliant with the law.
Selecting the right property manager that possesses most of these skills will ensure that you earn profits from your investment property for many years to come. You want to make sure you establish your own needs and then look for the traits of a successful property management company and find the right one for you. If you would like to know more about property management or see a successful property management company, check out Bigham & Associates.