What makes a property management company good or bad? A good property management company should free up the owner’s valuable time by taking over the daily tasks which make leasing a property so tedious. They should act as a business partner, helping you towards the shared goal of success and financial growth.
Property Management Company Red Flags
A property management company is an investment in the future of your property. They should possess the skills, experience, and professionalism to market your property, attract high-quality tenants and make them long-term tenants. If that’s not happening, or if you notice the following problems, it may be time to move on:
- High Vacancy
- Lackluster Tenants
- Poor Communication
- Sporadic Reporting
- Tenant Complaints
1) High Vacancy
A property management company that is competent, experienced, and knowledgeable should be marketing your properties effectively. Companies that aren’t active in the current marketplace, or that don’t keep properties in mint condition are likely to have consistent vacancies.
2) Lackluster Tenants
Part of the property manager’s job is to get your property rented to high quality, vetted tenants. If the property manager isn’t doing a good job of screening tenants and is putting deadbeat tenants in your property, evictions and turnover rates will spike. This can spell trouble for the reputation and profitability of your property.
3) Poor Communication
Communication is key in any business relationship but is particularly crucial between property owners and property managers. A good property management company should be the buffer between the property owner and tenants. In most instances, the property owner is not on site on a consistent basis, so they rely on the property management company to provide regular updates.
4) Sporadic Reporting
A property manager should send the owner a report each month outlining their income and expenses related to the property. The report should list how much rent was collected, how much was deducted in property management fees, how much was taken out for maintenance, etc. If you aren’t getting detailed reports, this is certainly a big red flag.
5) Tenant Complaints
If a tenant needs something repaired, or has a concern they need addressed, your property manager should provide a resolution in a timely manner. If your tenants can’t get any help from the property manager, the landlord-tenant relationship will become strained. When a tenant becomes dissatisfied, they’re more likely to try to break their lease or lodge a complaint.
Pro Tip: A bad property management company can drive good tenants away. Poor communication can kill the tenant-landlord relationship.
Don’t Waste Your Resources
Without the right management, your property could sit on the market too long or drive you to place unqualified tenants because you’re anxious about the vacancies. Bottom line: you waste resources when you don’t have a good manager.