The world of property management is a vast one. Despite what some may think, the responsibilities of property managers go far beyond just collecting rent and answering the phone for tenants. A good property manager is more than just a receptionist, so you must be selective in your buying criteria.
Buying criteria are all the information about a company/product that a buyer weighs when deciding what to purchase or who to hire. This decision is critical for property owners to achieve success and stay competitive with their investments in the property management industry.
So, what exactly should you be looking for? Here at Advantage Property Management Services, we've been on both sides of the relationship and seen what makes a good property manager firsthand. Let's dive into it to give you a basic understanding of what should influence your hiring decision.
Key Characteristics of a Successful Property Manager
Our founder, Russ Cowley, has worked with many different property managers in different markets to manage his own rental properties. What he ran into was a lack of strong communication skills, poor documentation, and a need for the property owner to be involved in day-to-day operations. Those experiences taught him and us what not to do in property management.
Communication and Transparency
Successful property management starts with communication and transparency. Having exceptional communication skills is a must for any great property manager to establish strong relationships with their owners.
That means always being active with the property and keeping the client informed through every aspect of running their rental property. From tenant placement to maintenance requests, everything about the business should be made transparent for the owner. This also extends to documentation; there should always be a convenient way for owners to access their rental records.
Full-Service Property Management Vs. Co-Management
While the baseline for great property managers is excellent communication, the foundation of your decision should rely on what kind of service they offer. Most property managers say they're full-service. But are they really full-service, or are they what we refer to as "co-managers"?
Far too many property management companies rely too heavily on the property owner's involvement. The property manager in these instances functions more like an assistant or receptionist.
That's why we call this approach "co-management." They can answer phone calls and field maintenance issues, but they'll need owner involvement every step of the way. For some people, that's the perception for some people of what a property manager is, but it's far from what it should be.
What Full-Service Really Means
Co-management is the exact opposite of what a great property management business is supposed to do for you. You're a rental property owner, but you're also a real estate investor. You should be freed from the day-to-day operations to achieve success with your investments and generate a higher ROI from your property.
Highly successful property managers understand the investor mindset and are there to take landlord duties entirely off of your plate. Full-service rental property management means exactly that. Full-service.
Property owners can and should be able to step away from daily operations and let their property manager handle it. That way you can be freed from the stress and earn true passive income on your rental.
The Buying Criteria for Property Managers
Now that you have an expectation of what full-service means, let's talk about the 5 questions you should answer when deciding on a property manager.
1. Realtors vs. Property Managers
As you're browsing options here in Pleasanton, you'll notice a vast majority of companies are a hybrid of property management and real estate sales. Despite popular belief, this is something we believe you should avoid.
That's because oftentimes, the company's focus will be diverted from managing properties towards their real estate sales. Being a property manager is a challenging job and highly specialized. Asking a Realtor to manage your rental is like asking your dentist to perform plastic surgery.
In the worst-case scenario, a company that does both will prioritize its real estate sales over its property management. Avoiding this will narrow down your search and ensure a good relationship.
2. Ratio of Doors Under Management to Staff
The next question you should ask yourself is what's the ratio of doors under management to their staff members? You don't want to hire a property management company whose ratio is too high. If they're putting too much on their staff, then each individual property won't be receiving the care it requires.
We have found that 50 doors per staff member is the maximum ratio to be efficient. When this number is met, the property manager has the human resources to effectively manage your property.
Here at Advantage Property Management Services, we deliver a higher standard in property management. We maintain a ratio of 30 doors per staff member to fully optimize our efforts.
3. Local to Your Area
When searching for property management professionals, you'll find that a lot of companies are tech startups and regional chains. The sheer scale of these companies often leads to a disconnect between the manager and the owner. It can lead you to feel like just another number in the relationship. Plus, the closer the company is located to your property, the easier it is to visit the property more frequently, a key component of effective property management.
Local companies in Pleasanton are more likely to genuinely care about your property and their relationship with you. You won't be just another client in a sea of them across the country, but a genuinely valuable part of their business.
A local property manager will also have the knowledge of Pleasanton real estate that your property needs to grow and avoid problems specific to our local market. For example, local laws on a state and city level are always changing. You want your property manager to always possess the right local knowledge.
4. Properly Sized for the Job
Similar to the doors-to-staff ratio, you also need to ask if the company has the right number of staff. Even if the ratio is right, having too few staff members in a property management company can cause issues for your property.
If only one or two people are doing the work, what happens if someone gets sick or goes on vacation? This can cause your rental to go completely unattended for days or weeks at a time.
The minimum you should look for is at least 4 staff members for the company. This or more allows for properties to still be properly attended to when someone is out.
5. Well-established Systems
The final question to ask is do they have well-defined and rigid systems in place for all of the work they do? Every aspect of their standard operating procedures from tenant screening to eviction proceedings should have documented processes. This way, everything about their work is consistent.
Possessing these organizational skills showcases that the property manager is experienced and knows what it takes to get the job done. Consistency is key to any successful business. Being able to repeat processes means you'll get the same quality of work every time.
Find Your Ideal Property Management Company
It's a common phrase in a lot of industries for customers to say "I can find 100 other businesses out there that can do this work!" However, when it comes to a job as complicated as property management, following the right buying criteria can narrow these options down to what truly is going to work for you.
At Advantage Property Management Services, we've learned that the hard way and apply it every day in the work we do for our property owners. We approach property management in Pleasanton with the right local expertise, a priority towards communication, and the right staff to deliver the best results.
If you're looking for property management in Pleasanton, contact us today for a consultation on your investment property. Let us handle the property side, so you can focus on the investment.
