This is a great follow-up to the previous Blog post. In the previous post we wanted to know if the property manager owned properties like ours. In this Blog post, we really want to know if they manage properties like yours.
Here is a good example.
Let’s say you have a B property, in a B neighborhood, with bread-and-butter blue-collar tenants. That’s great. This is usually a property type that has a pretty good solid tenant base and usually has a pretty good solid cash flow. You want to make sure that the property manager you’re going to hire is accustom to this type of property in their rental inventory.
There are 2 ways having the wrong property manager for your property type can go south on you quickly. Let’s say you hire a property manager whose primary inventory are C properties in C neighborhoods. Well, the types of materials and fixtures that property manager may choose to use on your property may not be a good match for the type of property you own.
You have a nice building with good tenants, and you have established a standard of putting in nice fixtures and appliances when you might need to replace them. But if your property manager is used to putting in fixtures and items that are beneath your set standards, you could end up with some pretty irate tenants with the sub-standard workmanship provided by the new manager. Mind you, the property manager is not acting in malice in any way shape or form. They are merely doing the job that would be done for a property that may not match your type of property.
The Flip Side.
On the other side of the coin is the property manager that came from an A+ rental community. That granite countertop replacement, or those crystal doorknobs they have selected might not be the best matches for your type of B property. You want to make sure you match like kind property with a like kind property manager. In this situation the A+ manager is spending way too much to achieve the same goal, a satisfied tenant. You could have achieved the same amount of “residential bliss” with a much smaller price tag. You want to have an apple to apples comparison with the property manager style to the type of rental property they are going to manage.
So the ideal fit is to have the property manager you choose on the same page for the types of properties you own. This should not be too difficult to figure out. You can ask for a list of the properties the manager has under contract and drive those neighborhoods. One good indicator for the class of property is the type of cars you will see in the driveway. If you are seeing lots of higher-end BMW and Mercedes parked their, chances are you are in an A neighborhood. If you are seeing a lot of auto body Bondo or cars up on jacks, chances are you are in a C or even a D neighborhood. Your nice average sedan or truck that is well kept and clean is a pretty good reflection of the type of tenant living in that building.
You want the match between your property and your property manager to be not too hot, not too cold. You want it to be just right.
Do you have any ideas on this topic you could share to help our online community?
Please chime in to share a comment or review.
Warmest regards,
Brian Lucier
Belaire Property Management
Regional Property Manager
(978) 448-0669
info@belaire.co
www.belaire.co
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