How do you know if you should have a property manager? And then, if you decide you do need one, how do you pick the right one? This blog should help you find the answer to both of those questions, and help you make the best decision for your business.
Is a Property Manager Necessary?
There are a few questions you can yourself to figure out the answer to this.
First, is this your full time job, or is it something you’re doing on the side? If it’s something you do on the side, a property manager will keep you from being too overwhelmed.
Second, a property manager will help you grow your equity. They will minimize your immediate cash flow, but not having to deal with the aggravating details of upkeep on properties may make it worth it.
Third, if you are investing in properties outside of your area, a property manager will be the person in control of the property who is not as far away.
Lastly, if your apartment is around a dozen units, it’s the perfect size for an off-site property manager to take care of.
How do You Choose a Property Manager?
There are a few things you should consider before hiring a property manager.
First, interview a good amount of options. It’s good to meet them in person, because then you can get a sense about what type of person they are. Don’t let yourself get carried away by their personality, though. You should have an objective standard that you are measuring them against, so that you choose the right fit.
Second, see how they run their business. Are you comfortable with the way they keep track of things? They should have good records for every business decision they have made. How do they choose tenants? They should be careful with who they choose, but also not be too choosy. They should be responsive to tenant requests for property maintenance.
Lastly, check their references. Feel free to find people who stopped working with them, and ask them why they stopped using their service. Google them. Once you’ve narrowed down your options, run a criminal check on them. Make sure you are choosing the best property managers for your business.
Partnering with Your Property Manager
The closer of a relationship you have with your property manager the better. If you have a solid relationship, they will be happy to let you know of any deals that come up in the area. They will hear more about the businesses around them, and can give you a heads up potentially before other clients.
Property managers take care of your properties so that they are less stress on your plate. These are a few things to consider as you see not only if a property manager would be a good fit, but who specifically would be a good fit for you.
To read more about this, check out this article that inspired this blog: https://www.biggerpockets.com/blog/choosing-property-manager-multifamily