Although it’s possible to manage your rental properties yourself, often doing so isn’t the best decision. It depends on the individual investors and their unique situations, but more often than not, hiring a property management company is a smart way to go—but only if you hire the right company for the job.
First, you should know what a property manager does. The problem is that some property managers fall short of their responsibilities, which can lead to dire financial, legal, or other problems for the investment property owner. So how can you tell if your property management company is doing a good job? Here are five key signs you’ve entrusted your investment with the right property management company:
1. They communicate with you regularly.
A good property manager is proactive and professional when it comes to communicating with you. They should be on top of things at your property and providing regular updates. You shouldn’t have to ask them about your property or spend a lot of time tracking them down or waiting for a response to your questions or concerns. If your property manager doesn’t provide clear, consistent communication—or even worse, doesn’t return your calls or emails, it’s difficult to trust that they’re doing their job well.
2. Your vacancy rates are low.
Low vacancy rates can indicate several good things about your property management company. When vacancies are low, it usually means the property manager is doing a good job marketing your property to new tenants and/or they’re providing good customer service to help keep existing tenants. It can also be a sign that your units are generally sought-after, which is always a bonus for your investment property.
3. Maintenance requests and other tenant needs are handled in a professional and timely manner.
If a tenant has a maintenance request or other issues arise related to the property, your property manager should let you know immediately and make sure the job to gets done in a timely manner. Not making needed repairs will strain even the best landlord-tenant relationship—and if the problem is bad enough to make the property uninhabitable, your tenant might have grounds to break the lease.
4. You consistently have good tenants.
Part of the property manager’s job is to get your property rented—but not to just anyone. If your property manager is doing a good job of screening applicants, you’ll consistently have higher quality tenants, which saves you loads of time, money, and stress. Finding the best tenant possible is never a 100% guarantee, but there are many steps that your property manager can take to significantly improve the quality of your tenants and minimize your risk.
5. Your tenants stick around.
A good property manager knows that even if they find good tenants, their job doesn’t end there. They also need to develop and maintain a good landlord-tenant relationship so that those good tenants stick around. As with all business, it costs far less to keep existing customers (tenants) than it does to find new ones, so the goal is to have long-term renters occupy the property. If your tenants tend to remain in your units for multiple lease periods, that’s a great sign that your property management company is pricing your units right, providing good customer service, and making your tenants feel well cared for (so they want to stay put).
It takes a good deal of time, knowledge, skills, and systems to manage a rental property effectively. Hiring a quality, full-service property management company like Powell helps ensure that your property and tenants are well taken care of and even should save you money. Learn how to choose the best property management company. And contact us today to learn more about who we are and how we can help!