Real Estate Investor Articles

I've written a lot about the importance of taking the time up front to prescreen your property manager to find one who has good follow through skills. That they possess adequate knowledge, of course is a prerequisite, but I emphasize that you really try to get a feel for how they run their business. Why? Because once you hire them, you really don't want to have to manage them.

To a certain extent, you will be "managing" your property manager, but this activity should be limited to the following:

First, when you've just hired a new property manager. Your new property manager requires a little more attention from you to make sure that he or she is really the right person for the job. It just makes sense that you need to pay close attention in the beginning to make sure that they are getting the job done right. Now, "in the beginning" can be a little misleading, because,

Follow up:

things may start off fine, and go smoothly for quite a while, but the real test may not come until the first non-payment or eviction comes up. When it comes time for the property manager to enforce the lease, you want to know that they are fair, yet firm. Your property manager should not be delaying evictions because they believe a tenant's promise that they will pay in a week, etc.

Second, you will have occasional opportunities to check in with your property manager when certain things come up. For example, if you get a notice from the city about a violation on your property, you need to update your property manager about it so that they can take care of it. This is also a good chance to check in and see how things are going. You can ask about rental increases for upcoming lease renewals, questions about recent statements, inquiries on maintenance to be done/that's been done, or about certain tenants who've been a problem in the past.

What you should not have to do is tell your property manager to start the eviction process for someone who is not paying rent. They should already be on it! You should not have to call your property manager every month to find out what is going on with your properties – they should be sending you timely statements on all of your properties and should communicate via email, telephone, fax or mail, regular updates on any non-paying tenants (regarding where they are in the eviction process or if they are one a payment plan, etc.). Lastly, your property manager should always be available to call you back within a reasonable amount of time. There is nothing more frustrating then having to chase down the person who is supposed to be working for you!

Until my next post,

James