How to Find a Property Manager for Real Estate Investment Properties [PART 1]
- Chris Joseph
- Oct 8, 2023
- 4 min read
As real estate investors, finding a reliable property manager is one of the most important decisions we make. They handle critical tasks like tenant screening, maintenance, rent collection, and much more. We recommend getting multiple estimates from reputable property management companies in your sub-market using a tool like All Property Management.
Choosing the right property manager will significantly impact the success of your investments. But with so many options, how do investors pick the best fit? This guide covers proven strategies to locate a property manager who will maximize returns and peace of mind.
Define Your Property Management Needs
First, clearly determine your specific needs. Factors like number of units, property types, budget and location dictate the profile of manager you require. Those overseeing large portfolios need staffed companies. A single vacation rental may need just an independent contractor. Detail all your key requirements.
Local Vs Remote Property Management
Would you prefer a manager who lives near your rentals or are you open to remote management? Local provides hands-on oversight but limits options. Remote using software gives more flexibility but less physical presence. Weigh the pros and cons based on your market and needs. Some investors use a hybrid approach.
Search on Yelp, Bing and Google
After determining your property management needs, you can search on websites like
yelp.com, bing.com, and google.com for property management companies in your local
area. Read reviews and comments about the quality of customer service,
responsiveness, and much more. Online searches will provide you with a lot of
information that you can use to vet property managers before calling them, and
eventually setting meetings and working with your top choice.
Interview Multiple Candidates
Avoid settling on the first option. Interview and vet at least 3-5 top contenders through calls and in-person meetings. Ask about their systems, processes, communication style, tech stack and fees. Make sure your philosophies align. Meeting in person establishes rapport needed for this critical relationship.
Verify Licensing and Credentials
Always verify active real estate licenses through your state licensing board. Membership in professional associations like the National Association of Residential Property Managers demonstrates a higher commitment to ethics and education. Look for AMO or CPM designations as well.
Tap Into Industry Networks
Connect with fellow real estate investors and industry professionals. Attend real estate conferences, seminars, and networking events – both locally and globally. Networking can lead to valuable recommendations and introductions to trusted property managers.
Ask for Client and Vendor References
References reveal much about quality. Request 2-3 current client and vendor references and call them. Ask clients about responsiveness, dealing with emergencies, reporting and their satisfaction level. Call vendors to confirm they are paid on time. Watch for red flags.
Vet Experience and Specializations
Look for specialized experience that matches your niche properties. For example, student housing, condos and rural rentals have distinct requirements. Managers who customize services to certain property types often deliver better results. Ask about their ideal clients and portfolio makeup.
Once you've identified potential property managers, it's time to conduct a thorough vetting process. Here are some key considerations:
Experience: Assess the candidate's experience, including the types of properties they've managed and their tenure in the industry.
References: Request references from their current or previous clients. Speaking directly to property owners can provide insights into the property manager's performance.
Services: Ensure the property manager offers the services you need, from tenant screening and lease management to property maintenance and financial reporting.
Fees: Understand their fee structure, including management fees and any additional charges. Compare these costs to your budget.
Review Sample Reports and Statements
Ask prospects to provide samples of their reporting documents and financial statements. The best managers use detailed, transparent reporting to keep owners current. Clean, timely documentation reflects organizational skills. Make sure formats align with your needs. Reputable property managers will have proven systems for success and will use software like Buildium to automate monthly landlord tasks.
Compare Service and Communication Plans
Dig into how managers communicate with owners and tenants. Make sure emergency response processes are robust. Clarify who handles maintenance requests, rent collection, inspections and tenant queries. Understand policies for non-payment, evictions and lease renewals.
Price Shop Management Fees
While tempting, choosing the cheapest manager often backfires. Yet you need competitive value. Price shop 3-4 contenders, but also consider experience and intangibles. Typically 10-15% for single family, 5-10% for small multifamily is reasonable. Require detailed fee breakdowns.
Drive the Properties and Area
Visit top prospects' offices. Meet staff who would handle your account. Then drive your properties and neighborhood. Note distance from their office, condition observations, and nearby vendors. Go with managers familiar with the submarket. Geographic competence is key.
Consider International Expertise
If you're exploring global investments, seek property managers with international expertise. They should be well-versed in cross-border transactions, currency fluctuations, and legal nuances, ensuring your international investments are managed seamlessly. They should also have good references and a track record of proven success.
Trust Your Gut Instincts
Data gathering provides objective insights. But also trust your intuition during interviews and interactions. Managing your assets involves trust and shared risk. If the relationship just doesn't feel right, consider that a red flag. Finding the right fit requires both head and heart.
Prioritize Alignment and Communication Fit
In the end, a great property manager must share your investment philosophy and communicate fully. Misalignment and poor communication cause more issues than anything. The best relationships start with transparency and frequent check-ins to meet evolving needs.
Following these best practices will help investors find an ideal property management partner to care for their assets. Vet candidates thoroughly based on their experience, systems, and intangibles. Use aggregated resources like All Property Management to find qualified companies. The right manager saves headaches and maximizes returns. Property management is among the most crucial investment decisions we make. Choose wisely by taking the time to make the best match for you and your investing needs!
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