How many properties does your property manager own like yours? This one is kind of a trick question. Most property managers started out managing their own properties and then take on similar properties like the ones they already own. That makes pretty good common sense. However, you have to keep your eye on the ball here. I have heard stories of some unscrupulous property managers actually taking good tenants out of properties they manage, and placing them into properties they own. Or even worse, filling up their clients properties with anyone that has a pulse to collect their fees and leave the landlord with nothing but a headache.
Comparing Doors to Doors.
It really breaks down to a question of volume. Do they have the proper amount of staffing to adequately keep up with all of the properties they manage? Again, the legal answer I will borrow from many attorneys is, “It Depends”. If their operations are automated with cloud software and real-time tracking systems, then a two or three staff office can easily handle 400 to 500 doors. If they are using post-it notes and stacks of paper for work orders, you may need a few more people to track that amount of volume. It takes more time to communicate to the vendors and contractors in the field if they do not take advantage of technology. For example, we have worked with a property manager in Florida that doesn’t use the Internet although she does use a computer for tracking and recordkeeping. She has one office assistant and together they manage hundred of single-family homes without skipping a beat. Again, there is no set rule. It depends a lot on the staff, the leadership, and the corporate culture of the Property Management Company.
You want to know the ratio of how many doors that property manager owns opposed to how many doors they manage for other owners. Then, you need to know how many properties they own, that are like the rental properties that you own. I’m not sure if there is a ratio or a certain percentage you might be looking for, but I think a red flag might be if the majority of their properties in their inventory are not just like the one you own and want to place into their care. There really should be a match to the types of properties they manage.
Be careful comparing the Inventory.
There are pros and cons on both side of this coin. Now you want the property manager you hire to be the right fit for the types of properties you own. You also want to ask some questions about the types of properties they own. What are their vacancy numbers like, do they have long-term tenants there, what is their resident retention program? Ask for a list of the properties they own. Then, take a drive by and see how they treat their own properties. Chances are they will not be treating yours any better than they are their own.
But if you like what you see, then that is a good indicator that you may have found the right property manager. Walk up and down the street at the property manager’s buildings. If you do get a chance talk to his or her tenants. Ask them questions about the property manager and the type of residents that live in the building. Is he responsible? Do repairs get made in a timely fashion? What type of turnover and turnaround do you have for neighbors? Do the apartments in this building have revolving doors with tenants coming and going all the time? Or, have you found a great rental community where the tenants are friendly neighbors with one another and have good things to say about the manager?
Not a Bad Fit After All.
So it’s not bad if you property manager has properties like yours. You do want to see how they care for their own rental inventory. Is that level of performance a match for what you expect for service? This reinforces that they know how to deal with the type of property you own. Better that they work out the kinks on their bricks than on yours. Just keep your eye on how many doors they own like yours and how they take care of their own rental stock. They are most likely to treat yours the same. Details count.
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
Belaire Property Management is now on
Facebook, Twitter, LinkedIn, YouTube, and Thumbtack
