If you have just purchased an excellent rental property, one that you are positive will prove to be a highly lucrative, long-term investment, know that you have done only the first part of the entire endeavor. The second part involves making a decision whether to hire a professional property manager, who will handle all the property management duties.
This is especially important if you live outside the area where your property is located, and if you are not readily available to regularly check on the property and service it. Or maybe, on the other hand, you simply do not want yourself tied to the regular day-to-day tasks, activities, and operations that a rental property requires. Maybe you just want to focus on other life activities, instead of papers and documents.
But, regardless of the reasons. If you ultimately decide to hire a professional to handle all your property management duties and tasks, there are some things you should know before setting on a quest to find the one, who will perfectly fit your requirements. The purpose of this article is to familiarize you with some of the things to consider when hiring a property manager.
Business, not babysitting
First of all, you must know that whatever individual you choose, he/she will probably not find it cost-effective to treat your property with the same passion and focus, as you would. Just remember that he/she will not be there to babysit your property, but to do business. This is, in fact, a good thing, since your property is a business investment and, obviously, not a child.
With this in mind, try to focus your efforts on finding a real estate manager, who will significantly contribute to your overall bottom line, and who will be skilled and diligent enough to handle the three key functions on your behalf.
As little vacancy as possible
For this to happen, a property manager needs to be capable of keeping good tenants in your building. He/she also needs to possess a skill with which to attract potentially new tenants, in the case of a vacancy. You will have to be assured that the property manager you have hired, will be capable of attending to the issues and problems that might concern the tenants, which can include repairing an appliance or a faulty switch, or properly dealing with some other, excessively loud tenants. If there are vacant rooms, you will need a manager, who will get the property ready to re-rent, advertise it and show it to potential tenants.
You should keep your property rented at market rents
Having a building full of tenants, who are not paying the same rent as tenants living in other buildings, in the same rent market, will not contribute to your profits. What you will need is a manager, who will be perfectly capable of keeping on top of market rents, and making sure your rent charges do not lag behind the competition.
Perfect control over the budget and the operating expenses
A property manager you hire needs to keep your property in perfect shape and service, by ensuring that all the operating expenses and bills are paid in a regular and timely fashion. Also, he/she must ensure that the overall costs and expenditures remain within the limits of the allocated budget. If the manager thinks the budget is unrealistic, he/she should notify you immediately, to reconsider and discuss the budget.