Over 50% of property owners hire property managers. In fact, 86% of property managers are responsible for another person’s property. Meanwhile, 24% of property owners are looking for someone to manage their investments.
Hiring a property manager can save you time and stress. However, you’ll need to avoid these costly mistakes with hiring property managers before making your choice. Otherwise, you could end up with someone who lacks the necessary expertise.
Read on for the tips you need to find a property manager you can trust today.
1. Not Checking Experience
There are now over 296,200 property management businesses across the US. The industry grew by 2.1% between 2022 and 2023. Unfortunately, not everyone on your list of options for property managers has years of experience in the industry.
To narrow your list of options down, determine how long each property management company has operated in the US. Consider how much experience each member of the team has as well.
Look for companies with longevity. These companies have outlasted competing businesses. You won’t have to worry about your property manager disappearing overnight.
An experienced property management company has likely worked out operational issues as well. You won’t have to worry about billing, scheduling, or communication errors. These teams know how to operate efficiently to offer the best possible services.
While it’s important to find a team with property management experience, it also helps to look for well-rounded expertise. Determine if the team has experience with:
- Legal matters
- Emergency responses
- Maintenance requests
Their experience and expertise will help you avoid mistakes regarding your property. These teams have likely encountered every problem under the sun. They can leverage their previous experience to help you make more effective decisions.
If the company is new to offering its services, remove them from your list of options.
2. Never Requesting References
Ask each property management company for three references. Check online for reviews from their clients as well. You can find reviews on the company’s Google Business and Better Business Bureau listings.
Look for a company with five-star reviews and a glowing reputation. Read a few reviews from each site to get a well-rounded idea of each business.
Look for comments about the team’s responsiveness. If the company took hours or even days to respond to their clients, keep searching. You’ll want immediate help, especially during an emergency.
Prepare a list of questions you want to ask the company’s recent clients. For example:
- How long have you worked with them
- What services do they offer
- Are they experienced
- Are they professional
- Have you encountered issues with them
If the client encountered problems after hiring the property management company, ask for details. For example, how did the property manager resolve the problem? Look for a company that prioritizes its clients’ needs.
Finding a company that offers the highest level of customer service and satisfaction will help you feel confident in your choice.
3. Failing to Check Services
Look for a property management company that offers services that align with your needs.
For example, you might need local residential management, careful tenant selection, or code enforcement.
Look for comprehensive services that will ensure your property is managed and monitored effectively. These might include:
- Rent collection
- Repairs and maintenance
- Tenant screening
- Document preparation
Every property owner has unique needs. Make sure the company intends to tailor its services to meet your requirements and expectations.
4. Not Questioning Availability
Ask each property management company how many properties they manage. Determine how many property managers they have on staff.
There’s no right or wrong answer to this question. If the company only manages a few properties, they’ll dedicate more time and resources to your property. You likely won’t have to wait as long for a response when you need help.
A larger team managing more properties, however, will likely have access to more extensive, high-quality resources. It’s likely they offer more services.
Ask each property management company about their responsiveness. Determine how long it takes them to respond when you need help. Confirm that they’ll remain available when you need them most.
5. Neglecting Qualifications
Before choosing between options for property managers, look into each manager’s qualifications. Determine what training they have and confirm they’re capable of dealing with potential complications.
Confirm that each team is knowledgeable regarding rental procedures, regulations, and laws. Ensuring your investment remains compliant and secure can help you avoid issues in the future.
6. Not Discussing Updates
Ask each property manager how they intend to keep you informed once they begin managing your property. How often will you receive updates? If the company doesn’t intend to keep you up-to-date, remove them from your list.
Asking for updates will ensure you’re aware of small issues before they become more complex (and expensive) problems. It also allows you to monitor the company’s work. If they’re not taking action as soon as these problems arise, you’ll know to choose a different company.
7. Forgetting to Review Contracts
Ask each property management company for an itemized list of the services they offer, along with a copy of their contract. Comparing property management costs can help you determine the average price of services. If one company’s prices are higher than the rest, determine why.
Don’t make any final decisions based solely on pricing. Instead, review your notes to find a qualified team you can trust.
Upon reviewing each contract, confirm that you won’t incur penalties if you terminate the contract early. Ask any questions you have regarding the contract before signing the agreement.
Avoid These Mistakes With Hiring Property Managers
Making these mistakes with hiring property managers could leave you with an unqualified candidate. Instead, use these tips to find a team with years of property management experience. Leverage their experience and resources to ensure your property is managed by professionals.
Want to streamline your search to find a property manager you can trust? We’re here for you.
Contact us today to learn more.