A rental property bringing in a steady cash flow is a great asset to have. Several investors in the real estate industry tend to buy properties and, after minor repairs, lease them to the tenants. However, it can also be a difficult decision to leave your property entirely in the hands of tenants.
Unfortunately, as is the case with most rental properties, tenants do not uphold the responsibility of taking care of the property. This can even cause a financial loss to the owner. In such cases, owners need to hire a property manager.
An experienced property manager will take good care of the property, keep the tenants satisfied, and maintain a steady cash flow for the owners. However, if you hire an inexperienced property manager, he or she can mishandle the property and tenants, eventually causing a low retention rate. Therefore, it is essential to hire the right professional.
Feeta.pk, Pakistan’s smartest property portal has prepared a guide to help you choose the right property manager for your rental.
Benefits of Hiring a Property Manager
Hiring a property manager comes at a cost, but it saves you the hassle of property management and legal procedures, among several other things. The following are some of the benefits of appointing the right property manager:
- Ensures traction on the property with effective marketing
- Helps you obtain high-quality tenants
- Saves you from any legal issues
- Maintains proper rent collection and cash flow
- Eases the eviction process
- Maintains solid monthly reporting and accounting
- Acquires a higher holding retention rate
- Ensures proper maintenance and repair work
- Prevents longer periods of property vacancy
Tips to Choose the Right Property Manager
A property manager can help you build a good portfolio in the market. However, finding the right professional is not an easy task. Rental property management is a long, complex process that involves tenant screening, constant communication, and property maintenance.
To choose the right property manager, you can follow the tips given below:
- Research the market
- Stick with local expertise
- Look for Organization and Tech Expertise
- Conduct multiple interviews
- Get referrals
- Prefer a proven track record
- Look for licensed property managers
- Review local ads
Let’s discuss these tips in detail for a better understanding:
Research the Market
Market research is essential when choosing a property manager. These days, technology has made this easier for property owners to look for relevant firms and professionals, and shortlist those with the best reviews.
Once you have prepared a list of potential property managers, you should check the following key information on their websites:
- List of services they provide
- Management charges and schedule
- Staff and leadership information
- Services for tenants and owners
- Contact information
- Customer testimonials
- Having reviews
- Original license
Stick with Local Expertise
Property management requires a thorough understanding of the local markets. Experts are well aware of various market factors, thus making the process easier for both owners and tenants. Before choosing a property manager, you can inquire about their knowledge of the following factors:
- Tenancy laws and licensing: Different areas have different property laws that govern tenancy conditions and rental licensing. During the tenancy, some problems may occur that would require a legal solution, hence, the property manager should be aware of related procedures and laws.
- Market demographics: Understanding the market demographics helps acquire the right tenants and maintain the tenancy rate. For instance, if a property is located in an area with a large student population, the property manager will help market the property as a suitable option for students.
- Vendor relationships: Property management requires property maintenance and repairs at different intervals. If the manager is unaware of the vendors in the local market, the cost of property management will be high.
Look for Organization and Tech Expertise
Property management is all about organization. If the property manager does not take care of everything meticulously, it might result in a bad reputation for your property. For this, proper documentation and communication are essential.
Electronic systems are secure and help maintain quick and effective communication. Technology awareness can also help find the best solutions for various problems. So, managers that are up to date with the latest technological trends can provide huge benefits to owners and tenants.
Conduct Multiple Interviews
While you are looking for a property manager, several candidates might approach you with their portfolios. You need to gather as much information as possible before proceeding further.
While you are interviewing candidates, the following questions might help you in getting the best results:
- How long have you been in the property management business?
- What will you cover in the monthly management fee?
- What are the conditions for the management fee?
- Will you provide a property management agreement?
- How many properties can you cover each month?
- What are the basic tenant requirements and basic screening process?
- How do you carry out property inspections?
- What is your deposit returning policy?
- Are you aware of the demographics of the area?
- Do you have an online portal for tenants and owners?
- Will you provide monthly and annual financial and property management reports?
These questions will help you analyze the management skills and professionalism of the applicants.
An important way to hire the best property manager is to get referrals from friends and investors in the market. If a manager or a company has a bad reputation, it will eventually come out when consulted with others. Similarly, good property managers will have a stellar reputation in the market, and everyone will suggest their services.
Prefer Proven Track Record
A professional’s track record with previous clients can give you a better idea about the quality of his or her services. When choosing a property manager, look for an individual who has the best projects in his portfolio.
Generally, owners look for the average time property managers take to fill a vacant property. Moreover, the maintenance factor should also be kept a priority. If the track record of a property manager shows excellent property maintenance, he or she should be your first choice.
Look for Licensed Property Managers
Property managers with licenses and proper documentation are a safer option for better management of your rental. Some property handlers have a good reputation in the market and a strong track record, but they lack legal authority. It makes them unreliable.
A licensed property manager is certified by the local government. They have taken the required property management courses and exams, which means they have a comprehensive knowledge of property management.
Review Local Ads
Property managers use local property advertisement agencies to share details about vacancies in different areas. These ads are displayed in newspapers or simply on digital platforms. For instance, big real estate companies or property management firms utilize their websites to display rental properties.
These ads and classifieds are your best ways to analyze the best property managers. Look for the following features in ads to help you make your decision:
- Unit Description: The best unit descriptions describe the rental place in detail, with all its features listed. If the management firm is showcasing all aspects of the property, it shows professionalism.
- Quality Photos: These days, property advertisement has become easier because of digital platforms. If the property manager displays quality images of the property to attract the tenants, it shows his professionalism.
- Virtual Tour of the Property: With the arrival of technology, it has become possible for managers to arrange virtual tours of rental properties. This helps the tenants in ‘visiting’ the property virtually from any place.
These aspects can help you find the property manager you are looking for.
To get more information about rental property management tips, visit Feeta Blog.