Hiring a Property Manager
A property manager should be skilled at juggling many tasks. He or she should make sure both the tenants and the property owners are satisfied. The primary responsibility of a manager is to care for the property and keep it appealing. Aside from that, it is vital that he or she preserves the real estate’s value not only for the owner and the existing tenants but also for the prospective ones.
A high school graduate can become a property manager, but many owners prefer someone with a real estate, finance, or business degree. If you are a landlord or a property owner and you want to hire a property manager, here are the essential qualities that he or she should possess:
1. Education
Property managers typically deal with the bottom line to increase and preserve the value of a specific real estate property. A degree is not a requirement, so whether the candidate has a master’s or a bachelor’s degree or graduated from high school should not be a big deal. However, a degree does give the person an edge over the other property managers, mainly because they have to deal with accounting.
People who took up courses in real estate, accounting, and business usually have the necessary tools in becoming successful in their chosen career path.
2. Experience
Aside from education, it also helps that the property manager has had previous work with another landlord. Experience aids in developing the necessary qualities for this position. When they perform a job in related fields of real estate, such as a broker or a sales agent, they will also gain a perspective on how the business works.
In some states, such as in Florida, a real estate broker’s license is required so that a person can manage a property and get a commission out of it. However, if the property is owned personally or is paid a salary, the manager does not need a license. On the other hand, managing a public housing unit that is funded by federal dollars requires that a candidate is certified. One national organization that can provide accreditation and certification programs is the Institute of Real Estate Management.
3. Detail-Oriented
An outstanding quality that the property manager should have is paying strict attention to details. This particular trait can protect both the tenants and the owner of the property. Laws on fair housing keep changing, and it is significant that the manager knows about these amendments, along with the ordinances and the building codes that may impact the property he or she oversees.
Potential safety hazards and other issues can lead to a lawsuit, which is why it is essential that the property manager understands that regular inspections are necessary. Additionally, repairs should be handled promptly.
4. People Skills
If you are a landlord, you do not want to leave your property to someone who cannot work well with other people. Therefore, people skills are necessary, especially when it comes to negotiating with angry tenants or even convincing the owner to maintain or increase the value of the property through making improvements.
The manager should have a friendly and positive attitude. At the same time, he or she should have excellent customer service skills, which are required to build relationships with the tenants and clients, as well as the potential ones. It is also essential that the property manager can communicate clearly, both in written form and verbally.
5. Organizational Skills
Most of the time, a property manager does not work with one or two properties, which is why above-average organizational qualities are required to be successful in this job. Working with several properties involves knowing the contact information of the tenants and the owners. At the same time, he or she should always be within reach.
The property manager should also know the phone numbers of the contractors, vendors, and the maintenance staff. Coordinating several projects is a must while developing a fitting timeline to finish tasks, such as improvement projects for the property. This trait is crucial, especially if the property manager is handling multiple properties at the same time.
He or she should also know how to manage time, which can be done by maintaining a calendar with the due dates for lease payments and inspections. The organizational skills of the property manager also include knowing when to pay the bills and preparing financial reports to be submitted to the owners. The property manager should also present a renewal contact to the tenants on the right schedule.
6. Professionalism
A property manager should act like a professional at all times. While it is useful to be personable, it is also important to maintain a level of professionalism, especially when dealing with tenants, colleagues, vendors, and customers, as well as internal employees.
Therefore, he or she should be kind, but at the same time, it is essential to be firm. It is also crucial to know how to deal with sensitive matters of the business, including raising the monthly rental rate, since it may seem a personal thing to the tenants who are affected. It is also useful that property managers feel comfortable when interacting with other people on a regular basis, including other professionals, such as lawyers and accountants.
7. Knowledge of the Basics and the Structure of the Business
An excellent property manager should know the absolute basics, including math skills; otherwise, some tenants can take advantage of the circumstances. Additionally, it is common for maintenance troubles to creep up, such as in properties that have large HVAC networks. In this case, knowing about the structure of the property can help the manager quickly resolve the issues.
8. Leasing Strategies
One of the key factors that aid in maximizing the investment returns of a client is to ensure that the property is leased as quickly as possible. However, the tenants should be the right ones, and they should be provided with favorable terms. A property manager will use established strategies that will help in capitalizing on the rental yield of a property. These tactics should include minimizing vacancies, screening potential tenants, attracting good quality tenants, and negotiating appropriate lease contracts.
The manager should also know about the market trends and be updated with rent surveys. These pieces of information may be necessary for helping the investors make the most out of their properties. At American Dream Homes, we make it our aim to review the latest market reports on a monthly basis.
9. Rent Collection
Some tenants will give excuses during the time of collecting rents. A top-quality property manager has a proven mechanism in place that ensures all rental fees are received at the right time. There should not be delays and alibis, which is why policies regarding insufficient and late payments should be in place. These policies should be fair yet firm, and if there are any penalties, they should be strictly enforced.
The property managers should also be aware that the contract for the rental property that the lessee and the lessor signed is legally binding. Therefore, it is essential to take the actions required if the conditions or terms are breached.
10. Reliability
Keeping records is necessary, but these documents should be accurate at all times. Record-keeping is a needed component when it comes to managing properties, especially for taxes and auditing purposes. These records are also useful in case the owner wants to sell the property as well as in making sure of the compliance with the requirements of the local council and the legislation.
These records are also for the benefit of providing peace of mind for the client. You want to know that your asset is appropriately and carefully looked after and these documents will provide that proof for you. Reliability of the property manager is proven with precise record-keeping. You will know immediately that he or she can be trusted if she always keeps a close eye on every small point while taking care of the more significant issues.
If you find a property manager with the qualities mentioned above, you know that it will be much easier to take care of your assets and your income in the long run.