How To Hire A Property Manager – Winston Rowe Associates
If you're looking to rent out your property, to lighten the burden, you might consider hiring an individual or third-party company to help you manage your rental units.
By: Winston Rowe and Associates
First, ask yourself if you would trust that person to stay in or rent your home. Trust is often overlooked in business and I believe it should be the foremost thing to look for.
2. Experience with Your Type of Property
Hire a professional who has experience with the type of property you acquired. Commercial properties and tenants have different nuances than residential. Even retail will have different issues than an office.
3. Financial and Accounting Acumen
It is now common in many commercial real estate companies to completely separate accounting and property management responsibilities.
4. Their Tenant Screening Process
The best property managers are ones who screen tenants by conducting background, credit and reference checks.
5. Their Turnover Rates and Cost of Vacancy
Investors often focus on the PM fee. Instead, focus on the turnover process. If your rent is $1,000 and PM is 10%, you pay $100 per month. At 9%, you only save $10 per month. Consider the cost of vacancy.
6. Their Technology Stack
More property managers than ever before are using technology. But look for the company or individual that offers a full stack of service integrated with technology.
7. Local Knowledge
Despite advances in technology, only so much can be done behind a computer screen. It is important the company or person you select to look after a property has "boots on the ground" and can check on the property in-person.
8. Ability to Communicate
Pretty much everything other than communication skills is either math, law or logistics which can all be taught and learned, but communication or people skills is the number one thing I look for in anyone representing my interest in a business or property.
9. Billing Transparency
On top of a rate to manage an apartment building, it is important to know the company's policies for other charges including maintenance, leasing and other activities.
10. Availability and Responsiveness
Want to be awoken at 2 a.m. by a tenant claiming their toilet is broken? This is why you hire a property manager. Hire a PM that has systems in place to answer and handle calls 24/7.
11. Values Cost-Effectiveness
There are uncontrollable costs like insurance, mortgage payment and taxes. Then there are controllable costs like turn times, marketing and maintenance or upkeep.
12. A Long-Term Mindset
Make sure they have a long-term mindset because real estate is a long-term play, not a one-night stand. It's a marriage.
Published by Winston Rowe & Associates they can be contacted at https://www.winstonrowe.com