One of the biggest challenges when using a buy-and-hold style real estate investment strategy is finding a good property manager or property management company to look after your investment. In fact, your entire outlook and attitude towards property can be shaped by the experiences you have with managing a property.
Generally, there are two options for looking after your properties – managing your property yourself or having it managed by someone else. Some people run their own properties and enjoy and find the experience positive. For others however, the hassle of finding tenants, carrying out inspections, researching rents, etc. are simply more effort than it’s worth and the money you pay for the management company to look after your property is money well spent.
But what about the situation where you have appointed a manager to look after your real estate investment but that manager is not doing the job well? Here are some examples of common issues with property managers: Lack of communication Not respecting rent Not respecting inspections Not following up on maintenance issues
There are some strategies you can put in place to help you deal with these issues: Establish your expectations with your rental management company upfront regarding communications, leasing, inspections, renewals, and maintenance. Have a process where you record your own rental income, inspection dates, lease renewal dates and set up email reminders for yourself and your property manager regarding inspections and renewal dates . Don’t let problems go by without talking to your manager, communicate regularly, be brutally honest, and put requests in writing.
The main lesson here is that you should view your real estate investments as a business and your property manager as an employee. Sometimes you will have to manage this employee and sometimes you may even have to replace him. Good property managers find good tenants, report to you regularly, run their business efficiently, and make sure you make the most profit possible. Of course, if you find a good property manager, let them know you appreciate their work and stick with them! They are worth their weight in gold!