Being a commercial real estate owner is a brilliant way of diversifying your investment portfolio, establishing passive income, and developing long-term wealth.
However, owning and managing a property can become overwhelming. Hiring a property manager would relieve you of the burden of dealing with tenants. A property manager has to ensure that the proprietor and the tenants are happy. He also has to ensure that the property is kept clean and maintenance is done regularly. The property manager becomes the link between the property owner and the tenants.
Therefore, it would be wise to get a skilled and experienced property manager since hiring an inexperienced one could bring disastrous consequences for your investment. To know more about property managers and their roles, you can check it out online for more detailed information. If you plan on hiring a property manager soon, here are some of the qualities that you should be looking for in a property manager to ensure the success of your investment:
Property managers should always pay close attention to all the details protecting the owner and the tenants. They have to ensure that the safety hazards that might lead to unwelcome lawsuits are eliminated. They also need to perform the necessary repairs and regular inspections of the property on time to prevent any issues.
A property manager also needs to understand that property ownership is a business, because of this they have to account for and document every penny received and used. Keeping the records in detail would help in auditing, especially during the taxation period.
Being organized goes hand in hand with paying attention to details. An organized property manager cannot miss even the most minor details. Organized property managers should simultaneously coordinate several projects within the recommended timelines. They should have a process for all aspects related to property management, from rent collection and budget setting to the scheduling of preventive maintenance and repairs.
Moreover, a property manager should have a detailed database of the owner and the tenants, which can be easily accessed when needed. The database should have the names, addresses, and other relevant details about the vendors, maintenance staff, and contractors.
Being organized ensures that the property manager has a calendar of all the due dates for rental payments, repairs, and inspections, accompanied by paying bills, signing leases, presenting lease renewals, and preparing financial reports.
You ought to have a property manager who conducts their duty with the utmost professionalism. This candidate should be confident, competent, willing to learn, respectful, ethical, and friendly. These are some of the attributes of a professional property manager, to help them get along with contractors, residents, and other personnel in a kind but firm approach, especially when handling sensitive business affairs.
Hiring a property manager means entrusting your assets to someone else as the property owner. That being the case, it would be critical to associate this role with someone who has a successful background in the job. An experienced property manager would know how to preserve and even increase the value of your property in this ever-changing market.
In determining how experienced a candidate is, it’s vital to consider the following aspects:
How they handled comparable properties in the past
How they deal with the problems that tenants experience and the day-to-day issues that come along their way
How they find tenants in challenging rental markets
However, it’s essential to know that experience extends beyond individuals. This means that a property manager can join the industry and still excel without having years of experience. Associating them with an experienced team can deliver the desired results since they can access the expertise and knowledge that surrounds them.
5. Good At Communicating
Effective communication is typically the key to any great relationship. The property manager’s role makes them the first point of contact for both the owner and the tenants, that’s why they should be able to deal with all the issues arising properly. They should also be able to speak and write professionally, eliminating emotions from what is being conveyed and finding the solution to the problem.
The quality of communication can impact the level of satisfaction of your tenants. Having responsible tenants, looking after the property, and paying their rent on time gives you all the reasons to keep them. Getting a property manager who is responsive, addresses issues immediately, and communicates effectively with your tenants would surely increase your property’s tenant retention.
It’s also essential to find a property manager who can keep you updated about everything related to your property, such as maintenance issues, rental payments, and tenant issues. The property manager can deal with some of these issues without involving you. However, keeping you in the loop alerts you about what’s happening on your property.
6. Available And Quick In Response
It’s essential to have a property manager who can be accessed with ease and respond to matters quickly. Good property managers should return phone calls and emails on time. They also have to attend to emergencies without hesitation. For instance, a tenant might have water leaks in the middle of the night, the property manager should ensure that a solution must be rendered as soon as possible, to lessen the inconvenience to the tenants.
Having a property manager who dedicates time to make sure that your tenants are happy and your property is taken care of is worth every penny that you’ve paid for the service.
Not all operations of property management run smoothly. Sometimes, the issue might be the tenants. Some might not care for the property as the contract stipulates or don’t pay their rent on time. A manager who can show strength and assertiveness when addressing a problematic tenant can maintain the wellness of your investment.
Therefore, having a property manager who can assertively ask for rental arrears, politely remove a tenant, or address property care issues can go a long way in keeping your business in place without causing problems with your tenants.
8. Have An Investor Mindset
You need a property manager who takes care of the property as if they own it. This shows you that the property manager has an investor mindset. The property manager should understand the difference between positive and negative gearing and how to maximize the rental yield of the property owner. The property manager should share ideas of how you can potentially increase the value of your property.
A property manager with an investor mindset can see the big picture, they’re confident in making crucial business decisions such as when to present rent concessions and what to spend money on. The rental return on your property can show you how healthy your investment is. Therefore, a good property manager would ensure the vacancy rates are as low as possible and would actively recommend maintenance before they become costly.
9. Have A Knowledge Of The Local Market
Each neighborhood differs from the other, because of this finding a property manager who understands the mannerisms of the local market is critical. You should look for someone who has concrete knowledge of the following:
What the rent of the area is
The demands of the tenants in that area
How to effectively reach tenants through a database or an advertising campaign
What amenities is the tenant willing to pay more for
Knowing about the local market ensures that you’re asking for the correct amount for rent and your property has the appropriate features that can appeal to a vast number of tenants. Knowing the amenities that the tenants are looking for can help steer improvement plans, thus increasing your chances of higher revenue.
10. Established Relationships
A good property manager should have an extensive relationship with vendors, maintenance companies, and other relevant personnel. Having these relationships saves time and money when you require their services or products. By building a good rapport with these providers, your property manager will not have a hard time negotiating for lower rates or getting discounts for services.
11. Have Strong References And Testimonials
Being endorsed by other property owners is a good indication of a trustworthy property manager. A property manager with quality service should provide written testimonials from proprietors or renters they previously worked with. You can even check their reviews online and enquire about their customer experience. If the testimonials display the satisfaction of both parties from the property manager’s services, you are sure to get a quality employee.
12. Tech Savvy
All industries are rapidly advancing in terms of technology. The property management industry is evolving as well. Modern technologies that allow proprietors to conduct self-showings are being introduced day by day. Having a property manager with knowledge of operating these software applications can keep you up to date in the real estate industry, thereby making your investment thrive even more.
A property manager who knows how to leverage your property data can use it to make proactive and precise recommendations.
As a proprietor, owning the property becomes the first task. Managing it becomes the second and most demanding task. This is because a commercial property requires constant monitoring of tenant issues, rental payments, maintenance, and repairs. This necessitates hiring a property manager to oversee the activities within your property. Finding a trustworthy property manager can be such a daunting task. However, the outline listed above highlights some qualities worth considering when looking for a dedicated property manager.