Is Your Property Manager Working For You? 5 Tips To Getting What You Pay For
With vacancy rates on the rise, it’s more important than ever to keep your units rented. Hiring the right property management company can go a long way towards doing so. But how can you be sure you’ve hired the right person? Following are 5 tips to help you make sure you’re on the right track.
1. Make Your Expectations Clear
One of the biggest mistakes that people make is rushing the process of hiring a property management company. Often they are so desperate to fill the position that they’ll interview only a few candidates before hiring someone. Taking a little extra time to hire the right property management company the first time will save you time and money in the long run.
The good news is that San Diego has a large pool of people to choose from. The first thing you want to look for in a potential property management company is enthusiasm. Remember that they will be the ones selling potential renters on your units. If they can’t even sell you on themselves, it’s unlikely that they’ll do an effective job for your rental units.
A good question to ask during the interview is, What do you like most about San Diego? If they answer with a generic response they are not the right candidate. Hire someone who exudes enthusiasm and who is passionate about the area. They should be familiar with and well informed on the attractions, such as Balboa Park, the numerous sporting options or Seaport Village. The key is to find someone who can speak with confidence and enthusiasm in regards to not just your rental units, but the area in general.
Once you have someone in mind that you think would make the right property management company, be sure to check their references and ask around and see if others in the field have any experience with them. Speaking not only to their previous employers but also with tenants that they worked with previously can be a big help.
When you’ve hired the right property management company, it’s important that you don’t simply hand them the management agreement with any addendums and assume that they’ll read them. Go over each issue individually to ensure that your new property management company understands the specifics of your rental agreement.
2. Stay Involved
While it’s true that you’ve hired a property management company to ease the burden of the day to day issues that spring up, this doesn’t mean that you can simply spend your days in Seaport Village, enjoying the San Diego sun or taking long drives through the mountains. You’ll need to strike a comfortable balance wherein you’ll check up on your properties, and your property management company, from time to time – without going overboard.
A good idea is to stop by your properties at least once a month. You’ll first want to do a drive by to check on the condition of the exterior of the property. Make sure your property looks great from the outside by creating an attractive curb appeal- this will help the property rent faster- the right kind of tenants take pride in where they live and these are types of tenants you want.
You should also take pictures of the interior and exterior of your units when you hire your property management company. This will give you proof of the condition your units were in when you hired them. In addition, have your property management company do a walk through every six months to make sure that there aren’t needed repairs that your tenants aren’t reporting.
3. Be Forward Thinking
It is the job of your property management company to take care of your advertising, but it’s your job to guide the way in which they do so. San Diego is not the type of city where you can simply place an ad in a newspaper once a month and hope someone spots it. Rather, you make sure your property manager is aware of the incredible promotional opportunities which exist on the Internet- if you see online channels your not using, get in touch with your manager and tell them about it.
Give your property management company an example of the type of ads you’d like written and follow up on them. Calling and posing as a potential renter can give you the best view of how your property management company handles these calls.
Check the books regularly. Focus on all the expenses that your property management company is incurring- keep on eye on each line item and expenditure so your property manager thinks twice before spending your money. The more often you check into these things, the less likely your property management company will be to abuse your trust.
4. Don’t Fear Change
San Diego is one of the most sought after locations to live in for many reasons. One of those reasons is that it is on the cusp of new technology and is a trend setting city. This means that you and your property management company must stay on the cutting edge if you are to find new renters and retain them.
One of the best ways to avoid having your San Diego apartment or home sit vacant for weeks or months at a time is to start showing them before your tenants move out. In order to do this, you must be sure that your property management company is keeping an open dialogue with your tenants. This will give you the best opportunity to know when you have tenants that will be vacating and to act pro actively.
You also need to be sure that you’re keeping an eye on the San Diego economy. While you do want to get a fair rate for your rental units, if you know that one of your long term tenants has been laid off or forced to take a pay cut, this is not the time for your property management company to raise their rents. Conversely, an increase in the San Diego Economy means that you should be ready to increase rental rates when the time comes not charging market rates is the worst mistake you can make as it devalues the perception of your property.
Lease increase need to be handled delicately- make sure you’re justified as if you’re not, your tenant will simply move to another location. However, if you instruct your property management company to do so in a fair way, you can relieve some of the tension. Keep your rental raises in line with other San Diego rentals. Tenants who understand that they may pay the same rent elsewhere are less likely to move-m oving is a huge headache and has many costs associated. It’s also a good idea to offer them incentive to stay, such as a bonus for signing a longer lease.
5. Appreciate Your Property Management company
Everyone likes to feel noticed and appreciated for their hard work, and your property management company is no exception. Something as little as a hand written Thank You can go a long way. As a management company, you should be quick to let your property management company know when their performance could be improved and quick to let them know when they’ve done an excellent job as well.
My name is Medo Eldin and I have been studying real estate and property management for several years. Visit my blog at San Diego Property Management. I look forward to reading your comments. If you have any questions, please do not hesitate to contact me. I am always open to discussing topics in business and real estate.