If your expectations from a property manager are only the collection of rent, then you have the wrong expectations. Bear in mind that the property manager is an imperative member of the investment team for various good reasons. For instance, a qualified property management professional provides valuable insights throughout the investment lifecycle. In this article, we will talk about “what to expect from your property manager?”
- Market Research
The information and knowledge you gain from books, seminars, research publications, podcasts, and similar other channels is by nature, the general information. Very little of this applies to any kind of specific property in a specific geographical location. The important thing is that you would need detailed local information on different topics and your property manager has that significant information you need. Your expectations from a property manager with regards to market research topics include:
- The type of property rents that do well in the given area, for instance, high rise, condo, single family, single story, duplex, two stories etc.
- The type of configuration: Two bedrooms, large lot, three car garage etc.
- What locations are doing well today and in the foreseeable future?
- The range of rents best suited to the pool of renters and tenants.
- What are the legislation issues (eviction time and cost) that will impact profitability?
- Property Assessment
Your property manager should provide valuable insights about “what makes a good investment?” Also, he or she should be able to provide you with significant information for any property, including:
- Estimated rent and estimated time-to-rent
- Information about Rehab items – this include primarily cosmetic (carpet, paint, etc.). These are the items that most tenants see in the photographs when they select properties to consider. They also assume that the HVAC, water heater etc. all work.
In addition, knowing the time-to-rent, estimated rent, and rehab costs will allow you to make an initial go or no-go decision on the property. Likewise, you will be able to decide how much you can offer.
- Property Management
After the rehab process is completed, it is now time to get the property rented. And this is the stage where you will know the worth of having a property manager. The primary duties and responsibilities of the property manager in this phase are:
The design and generation of valuable marketing materials, such as brochures, flyers, photos, and advertising the in the targeted locations so that your tenants pool will see them. Keep in mind that the photographs are critical. Only quality photos of an attractive, bright and desirable property will grasp the attention of prospective tenants.
Another important thing that you expect from your property manager is the “Screening prospective tenants” – This is one of the critical tasks of the property manager. Unluckily, there are property managers who select tenants based mainly on the credit score. Yes, credit score to some extent is important, but it does not tell you much about the tenants. Furthermore, a good property manager knows how to collect all the rent on schedule dates and deposit it into your bank account in a consistent and timely manner. Likewise, he or she must know how to control costs: what does this mean? Well, this means doing only the required work, for instance, timely and periodic inspections as well as proactive maintenance.