For someone who just fired his property manager two days ago, I couldn’t help but contribute to this post…
I actually (had) two property managers I was working with on 4 different properties. The first one I hired (the one I fired) I had found simply by contacting many different managers in my city and interviewing them at the property. Even though screening through at least five different managers could be a good idea, it is in no way enough to determine if they will perform and manage competently.
That being said, the other manager I have been using (and who took over in my other managers place this week) is a full night and day difference from the previous one I’d been using.
How did I find him?
Through references and networking with other investors. He came recommended by at least 3 other investors. He also is an investor and landlord himself and knows what is important to a landlord/property owner. You want to find someone that will do their best to treat your tenants and your property as good if not better than you would do yourself. I am currently living overseas so you can imagine how important it is to have the correct people in place for the job.
What to look for when hiring?
Its important to find out how many properties they currently manage and more importantly based on that number, how many people they have in their office that manage all those properties.
It is also important to find out how they handle the screening of new tenants, how quickly they respond to non-payment and evictions (hopefully won’t occur but you never know) and how they handle other operations such as 24/7 emergency svc, repairs and your payment each month.
Between these two managers, each was charging a mere 7% but wow, what a difference between the two when it came to professional management and competence. So my word of advice is don’t pay a higher mgmt fee such as 10-11% thinking a higher price will command better management. It should have nothing to do with it.
Talk to other investors for recommendations, speak with their current landlords/references, screen the ones you speak with and trust your instincts.
Wishing you successful investing…