Choosing A Property Manager – Laying A Foundation For Success

Passive income is the dream of those looking for a way to augment their income, as well as a cash cow for retirees. If only it were that easy! Buying a rental property is one of the most popular ways people strive to do it. However, the property manager charged with looking after the nest egg will also make the difference between success and failure. Read this

So, how can we be certain that the property manager we choose can answer all of our concerns?

What To Look For When Choosing A Property Manager

Nothing is more real than that no tower can be constructed without a solid base. Hiring a property manager follows the same logic. But, how do we conduct the necessary research to ensure success?

Although there are several variables to consider, there are five that must be addressed:

Point 1: Don’t keep things as they are: Perhaps we should ask the real estate agent if he can also handle the property so that we don’t upset the apple cart or complicate things. Will a specialist in real estate transactions, on the other hand, qualify someone to look after the property we’ve purchased on a long-term basis? Almost certainly not!

Point 2: Assist Them in Realizing Their Full Potential: When anyone is aware that other companies in the same industry may be interested, they will usually attempt to close the deal by providing rewards. Make it clear to the potential property manager that they are just one of your choices, and inquire about what they can do that is better than their competitors.

Due Diligence is the third point. People who work in real estate are usually excellent salespeople. Certainly not! I can hear you sobbing… but it’s real. If you choose a property manager solely on the basis of the sales pitch, disaster can ensue. Why not ask for and verify references from other people who have worked with the agent?

The Art of the Deal is the fourth point. In certain cases, the top line does not necessarily correspond to the bottom line. This means you can press the agent for more concessions; you’d be shocked what a little persuasion will accomplish!

Point 5 – Rental Property Inspections: Don’t make the same mistake we did with our rental property inspections. We employed a property manager who never came to check on the place while the tenants were living there. As a result, trash was often stacked high to the ceiling on our house. We are kicking ourselves for not hiring a property manager who can arrange routine rental property inspections. Solicit information from the property manager about how often they intend to audit the property and how much of a bond or deposit they would need from prospective tenants.