As much as you may not like to think this, you can't be a one-man show—at least not an effective one. It's hard to be responsible for the daily operations of your investment when you don't have the knowledge or experience needed.
Instead of running the risk of your own mismanagement, know your boundaries and find a teammate, someone who'll support you and can help you reach your goals.
This valuable teammate will be your property manager. They will make sure everything is running smoothly, that tenants are happy and taken care of, that your investment is well maintained, and that you're getting money. Sounds perfect, right? It's important to have a great relationship with this person because you'll be relying on them heavily to make your investment successful.
Tips for a Successful Investor/Property Manager Relationship
Teamwork and collaboration are key to making your investment successful and profitable. Therefore, it's vital you find an individual who can work with and respect you. Below are some tips if you're currently a landlord or are thinking of becoming one.
1. Do Your Homework: When you finally realize it's in your best interest to have a collaborative teammate working by your side, it's crucial that you take the time to research qualified property management companies. Ignoring this step can be disastrous for your investment. Nothing drives away tenants faster than mismanagement. You need a property management company with experience, knowledge, and a successful track record. To find these qualifications, you may have to interview multiple companies. With these qualifications also comes professionalism. If they meet these criteria, you can feel better knowing they'll be easy to work with.
2. Spell it Out: Things can get confusing fast unless you clearly define duties. When you do this, it leaves no confusion. Once duties are agreed upon, make sure they're put in writing. If they're only verbally agreed upon, you may have a disagreement in your future if the works fails to be completed. Clarification sets a good foundation for your partnership. Property managers are usually in charge of leasing, managing tenants, communicating with them, maintenance repairs, and collecting rent. As an investor, you'll work with the property manager to create a working budget and a long-term plan for your multi-family investment property. If any major work or expenses need to be approved, these items will also fall under your jurisdiction.
3. Set Expectations: Once you've found a property management company you like, it's important to understand their expectations and how they fit into yours. To discover the compatibility of your expectations, you can ask the company these kinds of questions: how do they handle leasing, do they provide online access to maintenance requests, is there in-house maintenance in case of urgent issues, etc. It's important to hear the answers to these questions before you sign an agreement with them. If you don't like what you hear, you can move onto your next favourite company.
4. Trust Your Decision: Once the I's are dotted, and the T's have been crossed on your agreement, relax, and trust the decision you've made. If you're a first-time landlord, you will have questions about how things work; that's understandable. What's not understandable is micromanaging. You've hired your property manager for a reason; you know they're qualified for the job, so it's critical that you let them do it.
5. Communicate Frequently: As an investor in the property, you have a lot at stake—there's no doubt about that. Therefore, you'll want frequent communication and updates regarding your investment. However, you don't want to badger them too much; there is a thing as too many emails. If you agree upon a communication schedule that satisfies you both, you can avoid annoyance between the two of you. You can set up phone meetings or in-person meetings every month if you want to be more involved, or every quarter if you feel your property manager has things covered. Either way set a realistic schedule that both of you can manage and follow.
If having a great teammate to help you and your investment property sounds like something you need, consider Braden Equities Inc. We have experience managing over 4,000 units and can offer you specialized financial statements, monthly property performance feedback, continuous property inspections are more. For further information, visit our website.