5 Reliable Ways To Choose The Best Property Manager

How To Find The Best Property Management Company For Your Investment Property.

Residential and commercial property management is a field that for too long has lacked enough competition to really force companies to maximize their value for customers. For that reason, there are many subpar property managers out there that sully the industry’s reputation. But if you’re willing to do your homework, putting your real estate investment in the hands of the right company can lead to consistent positive returns. By focusing on the 5 areas below you can ensure that the property manager you hire is the best property management company for you.

#1: TRANSPARENCY

The art of negotiation is central to real estate, but if negotiations are a part of the pricing scheme for your property manager’s fees, something is wrong. Negotiations are problematic for two main reasons: 1) They imply that the management company will take more than their share if allowed to do so; 2) You might be paying more than another client for the exact same services. There’s a very simple way to find out if a property management company is playing games with pricing: Find their posted pricing on their website. If you can’t find it...then you can safely assume the pricing changes from client to client. This doesn’t cut it.

#2: ALIGNED INCENTIVES

Now that you’ve found your potential property manager’s pricing and fees, ask yourself if they align with your goals? As a property owner, you want your units filled with quality tenants at all times. Does the property manager have any guarantees or means to fulfill this...or do they collect rent even if a unit is vacant? Does the company handle maintenance in-house (which will lead to savings for you) or do they contract out to third parties who they need to build a relationship with and who also need a piece of the pie? Are there any hidden fees or charges that are unrelated to the maximization of your investment? If so, you can assume this discrepancy between your priorities and their need to make a couple bucks at your expense will lead to headaches and conflict down the road.

#3: ONLINE REPUTATION

It may seem overly simple, but online reviews are as good a resource as any to get a feel for the relationship a property manager has with its clients. Volume matters. If people are willing to take time out of their day to write something positive (hopefully) regarding services provided, that means a lot. Take your time to read through some of the reviews. Do they seem genuine and sincere or generic and coerced? Most notably, key in on the negative reviews that have been written and see how these are handled? Are they ignored? Refuted? Is the company apologetic? You can learn a lot from positive reviews, but even more from the negative.

#4: MANAGED PROPERTIES RESEARCH

How many properties does the company manage? If they successfully manage hundreds of units, it is likely they are skilled at providing services to their customers. Are they managing more units than the previous year? In what direction are they trending? What types of properties do they manage? Most property management companies will simply refer to themselves as commercial and/or residential managers, but it is more than likely that they focus on one type of building more than others: single-family homes; multi-family residences; large apartment complexes; etc. Be sure that your property is being managed by a company that specializes and has experience with properties like yours.

#5: ONLINE PROFICIENCY

Companies that don’t provide online communication and don’t provide online payment options simply will not keep up. If your property manager is behind with technology, they are never going to catch up. The ideal property manager allows owners, tenants, and members of the property management team to converse on a shared portal. Leases and important documents should be available to view and sign electronically. Payments need to be online. When dealing with your major investments, you need someone handling them who is efficient and organized. Inability to adopt the latest technologies is inexcusable and a clear sign that a property manager is not the choice for you.

Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

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