A property manager can either make you or break you.
And for that reason, you need to know exactly what kind of property management services to look for.
While a good manager can catapult an investors overall portfolio performance sky-high, a disengaged or inexperienced one can end up costing time, money and a whole lot of headaches that can lead to serious consequences.
Not all property managers are made equally and while every industry has its duds – this is not one that allows for much trial and error.
So, before you settle on someone to manage one of your most valuable assets, do your due diligence and consider these four vital factors when selecting a professional property management company to look after your next investment.
Tip 1: The Investor Mindset
A good property manager has an investor’s mindset, because they are investors themselves. This means they understand how to manage the individual assets within your portfolio to ensure your properties are performing to their full potential.
They know where money should be spent and where to draw the line. They have proven and demonstrated results, knowledge and experience because they live and breathe real estate.
Tip 2: Property Volume
To really ascertain the skill and expertise of a property manager, you need to ask the right questions and then listen carefully to the answers.
For example, what volume of properties do they manage? A stand-out property manager is not just there to do tick-the-box rental inspections and make sure money is in on time (although that is important).
A good property manager will work with you to grow the overall performance of the property by looking for opportunities to enhance your portfolio’s potential.
It’s a two-way street that requires strong communication between you and your property manager and if they are over-saturated due high management volumes then you really can’t be sure that anything above the basics will be taken into consideration.
Tip 3: They Can Demonstrate Growth
Your property manager will form a vital part of your wealth creation team and should be interviewed accordingly. They should be able to answer questions such as – “How can we achieve higher rents? And what would you recommend to help improve yields?”
Property managers who have experience in these areas will be able to provide in-depth answers and back them up with results that leave you feeling assured your investment is in the right hands.
Try to get an insight into their rental appraisal process, how they conduct a tenant selection to find the right tenants, and how they can get the most for you in that particular property market.
Tip 4: Occupancy Rates Say A Lot
It’s not always about getting more rent. You can also tell a lot about a property manager as to how well they keep their vacancies down.
It is essential that an investor has a solid tenant in place who looks after the rental property and pays their rent on time. Empty homes are a big and expensive problem – and you need to know that someone is working for you to get your placed filled with the best possible tenant in the quickest possible timeframe. As a property owner this gives you peace of mind when the bills come through,.
We all know that good tenants are at the heart of a successful career in real estate, so your property manager should be dedicated to getting this right. They need to be able to attract the right people for you and know how to keep them happy.
The Dream Team
Those are just some of the key tips you need to consider when selecting a property manager who will go the extra mile for you.
The right one will save you copious amounts of time and money in the long-run, while contributing to your wider wealth creation goals.
Property investing can be stressful without the right manager, so aim to work with one that makes the process as stress free as possible.
However, don’t just think that because you have a property manager in place that you’re not responsible for your investments. You are. You and your property manager are a team and it’s still your job to drive performance to maintain strong results.
Remember – success is up to you.
You are the CEO of your investment portfolio and you should be overseeing a team of property professionals who can help you to achieve your desired financial outcomes.
To learn more about how you can find and manage your dream team of property experts, come along to our free property investing seminars. Use the form below to book your free spot.
Don’t leave your property investing career to chance. Learn the exact winning formula that thousands of people have used to generate real wealth from property.
Director – Positive Real Estate NZ
Property Investor Night – free tickets!