5 Things to Look for in a Property Manager

Congratulations, you are a property owner! I bet you are excited to start making that sweet, sweet passive income. Well if you are looking for a property manager, here are 5 things to look for when conducting your interview.

Experience

Experience is important for any job, and it is essential that you take that into account for your future property manager. Some Property Managers have experience in apartments, while others have experience with single-family homes; try to find a property manager that will fit your needs. It’s also great if the property manager has been in the business for a long time because it means they are well experienced in the business.

Lots of Clients

If a property manager has little to no clients, it’s a red flag that something is wrong. A property manager with few clients can mean that they are poor at managing properties or they are just starting and do not have any experience. Try and find a property manager that has a lot of clients as you know that they are doing their job correctly if that is the case. On the other end of the spectrum, if the property manager has too many clients – say over 1000 – your property manager probably will not have the time to be proactive in inspections and maintenance visits to the property.

Tenant Screening

The property manager you choose should have policies and procedures on how they screen your tenants. Make sure that the manager has the ability to perform background checks, credit checks, and has a way to prove that discrimination is not occurring so that a tenant cannot say you have treated them unfairly based on discriminatory grounds.

Look at the Contract

Make sure that you have a written contract with your property manager. You will want to go over the contract so that you can understand how the property manager is willing and able to help you. The contract can highlight why a property manager is a good idea or a bad idea. Property managers will have different ideas of what they are responsible for, and going over these responsibilities in a contract will help you determine whether the property manager you are looking at is going to be an asset or a liability for your company. This will ultimately help you determine if they are the right fit for what you’re looking for. The contract can also have benefits such as knowing when it is okay to terminate the partnership, having the peace of mind knowing if the manager does leave they have to give notice ahead of time, and proof that an agreement was made that can hold up in court.

Certifications can help you feel more at ease when hiring a manager. Depending on your state, you may find that some property managers do not hold any certifications. However, it is important that you find a property manager that has some sort of certification or licensing to back up their experience. Make sure that you understand which certifications are useful for your property, and try to seek those out in your property managers.

Experience, number of clients, tenant screening procedures, certifications, and the contract are all things that you should consider as you look for that perfect property manager. Just like in hiring any employee, a lot of it is your gut instinct of whether you personally believe they are a fit for the company. So go through these steps and follow your gut, as you will probably be right.